Ethereum layer-2 network Blast is shutting down operations after determining that its operating costs have exceeded the revenue generated by the chain.
In a post on X, the Blast team stated that it sees no credible path to making the network economically sustainable. The project was originally launched with the goal of building a self-sustaining chain for users and developers, but the team noted that the economics of operating the network no longer make sense.
Users have been advised to withdraw their assets to the Ethereum mainnet. To facilitate the process, the network will reduce its withdrawal delay to 24 hours. However, withdrawals will be temporarily unavailable while Blast unwinds its Lido assets, a process expected to take approximately a week.
Users have until Oct. 26 to withdraw their funds through the Blast interface. After that date, assets will remain accessible, but withdrawals will require users to interact directly with the Blast bridge contracts on Ethereum. The team stated it will publish instructions for direct bridge withdrawals ahead of the deadline.
Blast was unveiled in November 2023 by Tieshun “Pacman” Roquerre, founder of the NFT marketplace Blur. The network introduced native yield on Ether and stablecoins alongside a points program tied to an anticipated token airdrop, successfully attracting over $2 billion in deposits prior to its mainnet launch in February 2024.
Despite its initial growth, sustaining the network proved difficult amid a broader downturn in the NFT market. According to DeFiLlama data, Blast’s decentralized finance total value locked has fallen by more than 98% since peaking at roughly $2.2 billion in June 2024. Blur has experienced a similar decline, with its total value locked falling from over $200 million at its early-2024 peak to about $27 million.
