Ethereum Layer-2 Network Blast Shuts Down After Assets Plunge 98 Percent

Ethereum layer-2 network Blast is shutting down a little over two years after its launch, as fading activity has left the blockchain unable to cover its operating costs. The project announced Friday that the ongoing costs of maintaining Blast exceed the revenue generated by the layer-2 network, leaving no credible path to economic sustainability.

Blast activity dried up significantly following its speculative peak. Total value locked on the network plummeted 98% from $2.2 billion in June 2024 down to $32 million, according to DeFiLlama data cited by CoinDesk. Meanwhile, network usage generated just $1,793 in revenue last month, compared to a peak of about $3.5 million in June 2024. Following the announcement, the native token $BLAST fell 19%, extending its decline to about 98% from its launch.

The shutdown highlights a broader consolidation trend among blockchain networks as security and infrastructure costs mount. Larger consumer platforms with built-in distribution, such as Coinbase with Base and Robinhood with its own layer-2 network, have increasingly captured user activity, leaving smaller chains competing in an overcrowded market.

Withdrawal Instructions

Users have until October 26 to withdraw assets back to Ethereum through the official Blast interface, according to the project's X post. After that deadline, withdrawals will require interacting directly with underlying bridge contracts.

Key Facts

• Blast is shutting down its Ethereum layer-2 network after concluding operations no longer make economic sense.
• Total value locked on Blast dropped 98% from $2.2 billion in June 2024 to $32 million.
• The native token $BLAST fell 19% following the announcement.
• Users must withdraw assets via the Blast interface by October 26.