Ethereum L2 Network Blast Shuts Down Amid Unsustainable Costs

The Ethereum Layer 2 network Blast will shut down operations by October 26th due to unsustainable costs. According to an X post from the team, they no longer see a 'credible path' to make the chain economically sustainable.

The economics of operating the chain have become unfeasible, with ongoing maintenance costs exceeding revenue generated by the L2 network. In fact, data shows that the total value locked (TVL) across the chain has declined by over 90% since mid-2024, from $2.4 billion to $32 million.

Users are expected to withdraw their assets from Blast to the Ethereum mainnet before the shutdown. The team also assured that funds still locked up in Lido will be made available within a week.