Blast, a once-$2.3B Ethereum Layer-2, is shutting down due to operating costs exceeding revenue; users must withdraw assets by October 26.
Tech & Launches ·
Blast, an Ethereum layer-2 network that once held more than $2.3 billion in locked assets, is shutting down after its operating expenses outpaced revenue. The team announced Friday that no credible path to economic sustainability exists and called users to withdraw their funds to Ethereum's mainnet by October 26 through Blast's interface. After that deadline, asset recovery remains possible only through direct interaction with the network's bridge contracts on Ethereum. A temporary pause in withdrawals will occur while the team extracts assets from Lido, a liquid staking protocol, with the withdrawal delay then cut to 24 hours.
Blast launched in November 2023 backed by Paradigm and offered automatic yield on ETH and stablecoin holdings. Over $2.3 billion flowed into its bridge by February 2024, though total value locked declined roughly 30% from that peak. The network's June 2024 airdrop allocated $354 million in BLAST tokens but generated substantial user dissatisfaction, and the chain briefly halted block production following Ethereum's Dencun upgrade in March 2024.
The closure joins a widening pattern of layer-2 consolidation. Zero Network and Silicon Network both announced wind-downs this year, with Silicon Network holding approximately $9.75 million and accepting withdrawals until December 31. The broader crypto landscape has seen additional major disruptions, including scheduled exchange closures.