Ethereum Layer 2 Network Blast Shuts Down Amid Rising Competition

Ethereum layer-2 network, Blast, is shutting down after more than two years of operation. The network's total value locked (TVL) has fallen to about $32 million from a peak of more than $2.2 billion in June 2024, a decline of about 98%, according to DeFiLlama data.

Blast's revenue from usage fell to about $1,793 in September 2026 from a peak of roughly $3.5 million in June 2024, according to DeFiLlama data. The network's native BLAST token dropped by almost 50% following the shutdown announcement and is down about 98% from its launch.

The shutdown comes as competition among Ethereum layer-2 networks increases, and major crypto platforms, including Coinbase and Robinhood, develop their own blockchain networks. Blast has asked users to withdraw their assets to Ethereum's mainnet, with a temporary pause on withdrawals to unwind assets held through Lido, a process expected to take about a week.