Paradigm-backed Layer 2 Blast to wind down operations as costs exceed revenue, with TVL collapsed from $2 billion to $32 million.
Tech & Launches ·
Paradigm-backed Layer 2 Blast is winding down operations after operating costs exceeded revenue, with total value locked collapsing from $2 billion to $32 million. Users have until October 26 to withdraw their assets through Blast's interface before being required to use bridge contracts directly for any remaining withdrawals.
The shutdown reflects mounting pressure on Layer 2 networks to achieve profitability amid intense competition and declining user engagement. Blast's dramatic decline in TVL signals the challenge smaller scaling solutions face in sustaining operations when transaction volumes and associated fee revenue fail to cover infrastructure and development expenses.
The exact timeline for full network shutdown beyond the October 26 withdrawal deadline, and whether any wind-down compensation or migration assistance will be offered to affected users, remains unspecified.