Ethereum L2 Network Blast Announces Shutdown Amid Unsustainable Economics
Ethereum layer-2 network Blast announced it will shut down due to unsustainable economics, citing costs exceeding revenue. The team behind Blast stated there is no 'credible path' to keeping the chain financially viable and urged users to withdraw their assets to Ethereum mainnet.
The shutdown plan centers on withdrawals, with a clear deadline set for October 26. After that date, funds will remain accessible but withdrawing will require interacting with Blast's bridge contracts directly on Ethereum. The team will publish instructions for this process ahead of the cutoff.
Blast launched in November 2023, building an approach around native yield on ETH and stablecoins, along with a points program aimed at an anticipated token airdrop. However, the network's DeFi activity has contracted sharply, with total value locked (TVL) falling by more than 98% since its June 2024 peak.