Blast to shut down Ethereum layer-2 network after costs exceed revenue

Ethereum layer2 network Blast is shutting down after the team said operating costs have outpaced revenue and the project no longer has a clear path to financial sustainability. In a post on X on Oct. 2, the Blast team told users to move their assets to Ethereum mainnet before the shutdown process advances. The network plans to shorten withdrawal delays to 24 hours, although withdrawals will be temporarily paused while it unwinds assets tied to Lido. Users have until Oct. 26 to withdraw through Blast’s interface. After that date, funds will still be accessible, but withdrawals will require direct interaction with Blast bridge contracts on Ethereum. Blast said it will publish instructions before the deadline. Blast launched in late 2023 and drew more than $2 billion in deposits before its mainnet debut in 2024, but its total value locked has fallen sharply since then amid weaker demand in the NFT and DeFi sectors.