Blast's Sudden Shutdown Cripples $51M in Ethereum Bridge

The Ethereum Layer 2 network Blast is shutting down due to unsustainable economics. The chain earned $110 in revenue over the past day, but its maintenance costs exceed that amount. This decision affects users who have $51 million bridged from Ethereum, which will face exit challenges.

Blast's founder, Tieshun Roquerre (also known as Pacman), built a marketplace for digital collectibles called Blur and expressed disappointment about Blast's inability to be sustainable in the long term. He thanked users, developers, and teams who helped give Blast its moment, even if it was shorter than expected.

The value locked on Blast has dropped by nearly 99% from its peak of $2.24 billion in June 2024 to $32.3 million. The Blast token fell 19% after the announcement. Users have until October 26 to use the normal app, after which they must deal with Blast's contracts on Ethereum directly.

L2BEAT, a site that rates network safety, noted that any three of five keyholders can change or pause withdrawals. This has raised concerns about potential losses due to a design risk in Blast's fraud-proof system, which never fully worked as intended.