Ethereum Layer 2 Blast Shuts Down Due to Financial Struggles
Ethereum layer 2 network Blast has announced its shutdown due to unsustainable financial conditions. According to reports from The Block and other media, Blast cited that the cost of maintaining the network has surpassed its revenue, making it financially unviable. The platform has urged users to withdraw their assets to the Ethereum mainnet, with a reduced withdrawal waiting time of 24 hours.
Users will be able to withdraw assets through the existing interface until October 26. After this date, they can still retrieve their assets via the Blast bridge smart contract on Ethereum layer 1. Blast had initially gained attention after raising $20 million from investors like Paradigm and Standard Crypto during its launch in November 2023. However, it struggled to maintain sustainability amid a downturn in the cryptocurrency market.