Blast Announces Shutdown as Network Costs Exceed Layer 2 Revenue
The network said fading activity and revenue left it unable to cover operating costs, and users have until Oct. 26 to withdraw assets.
- On Friday, the Ethereum Layer 2 network Blast announced its shutdown, citing unsustainable operating costs and stating there is no credible path to economic sustainability.
- Large consumer platforms like Coinbase and Robinhood launched their own Ethereum-based networks, squeezing smaller chains for developers and transaction fees as Blast's revenue collapsed from about $3.5 million in June 2024 to $1,793 last month.
- Users must withdraw assets to Ethereum by Oct. 26, 2026, through Blast's standard interface; the team will first withdraw Lido holdings over approximately one week, then reduce the withdrawal delay to 24 hours.
- BLAST tokens fell 19% after the announcement, extending a steep decline that leaves the asset down about 98% from launch, while total value locked plummeted from over $2 billion in June 2024 to $32 million.
- Smaller blockchain networks face a broader shakeout as they struggle for developers and fees; projects like Fantasy Top and Pacmoon have already exited the ecosystem, leaving chains fighting for market share in an increasingly crowded industry.
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20 Articles
Blast, a Layer 2 network of Ethereum that reached over $2 billion in assets, announced its closure after concluding that operating costs can no longer be sustained with revenue generated by the chain. Blast will end its operations after just over two years of activity. The decision comes [...] The Blast entry will close its Ethereum Layer 2 network after losing 98% of its assets was first published in Cryptoreport.
Ethereum Layer 2 Network Blast to Shut Down After Revenue Collapse
Blast, a once-buzzy Ethereum Layer 2 network, is set to shut down later this month after a dramatic decline in activity left the scaler too costly to maintain. Blast Heads for the Exits Launched in early 2024, Blast hailed from the founder of NFT marketplace Blur, Tieshun “Pacman” Roquerre, and arrived with backing from prominent […]
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