Ethereum Layer 2 Network Blast Shuts Down After Revenue Collapse
Ethereum layer 2 network Blast is shutting down due to unsustainable financials, with monthly revenue collapsing from $3.5 million at its peak to just $1,793 in September. The team announced the shutdown on October 2, 2026, giving users until October 26 to withdraw their funds via the app. Total deposits on the network have plummeted to about $24 million, a 99% drop from its 2024 peak of $2.3 billion.
Users' ETH deposits remain safe as they are locked in Ethereum's bridge contract, but withdrawals will become more complex after October 26. The Blast team must first withdraw ETH from Lido's staking service before processing withdrawals. After the deadline, users can still retrieve their coins by sending a transaction directly to the Ethereum bridge contract, though this requires more technical expertise.
The BLAST token faces the biggest risk, having already lost 99% of its value from its 2024 peak. Its value is entirely tied to the dying network, making it highly speculative. The shutdown highlights the risks of smaller layer 2 networks, where revenue can drop drastically, leading to closure.
For those using lending or trading apps on Blast, an extra step is required to withdraw assets before bridging them back to Ethereum. Notably, Pac Finance and Thruster controlled around $14 million of the remaining $24 million in Blast as of October 6.