Ethereum Layer 2 network Blast has announced plans to shut down operations by the end of October, citing challenging operational costs. In a post on X, the project team stated that they could not find a credible path to make the chain economically sustainable, noting that ongoing maintenance costs exceed the revenue generated by the network.
Data indicates that Blast experienced flat cumulative revenues from early 2025, showing no meaningful revenue generation over nearly two years. Additionally, the network's total value locked dropped by over 90%, falling from $2.4 billion to $32 million since mid-2024.
Users are expected to withdraw their assets from Blast back to the Ethereum mainnet. For assets locked in Lido, the team stated that one week will be needed to process withdrawals and make funds available. The final deadline for direct withdrawals is October 26, after which any remaining stranded assets will only be withdrawable through the Ethereum mainnet—a process noted to be complicated and technical for average retail users.
Blast founder Tieshun Roquerre, known as Pacman on X, expressed disappointment regarding the closure. However, the shutdown has triggered significant community backlash, with critics and venture capital figures labeling the project and founder as "extractive" and alleging a slow rug pull. Critics also highlighted a 98% drop in the token's value from its late 2024 peak to $0.02 in 2026.
The closure of Blast follows similar decisions by other crypto platforms in 2026, such as BitMart, BitMEX, and CoinEX, which have shut down due to competition, compliance costs, and falling revenues.
