BLAST Token Crashes 44% After Ethereum Layer 2 Network Shutdown Announcement

The BLAST token, native to the Ethereum scaling network Blast, plummeted over 44% in 24 hours after the project announced it would be shutting down its network due to unsustainable operating costs.

The team behind Blast cited the economics of operating the chain no longer making sense, with ongoing costs exceeding revenue.

The network, which processes transactions away from the Ethereum mainnet, had seen a significant decline in activity since its peak in June 2024, with total value locked (TVL) falling to $21.25 million from over $2 billion.

Users are being asked to move their assets to the Ethereum mainnet, and withdrawals will be paused during a one-week unwind of positions held in Lido, a liquid staking protocol.

The canonical bridge held about $63 million as of October 2, and South Korean exchanges Upbit and Bithumb have designated BLAST a trading-caution asset.