Blast Shuts Down Ethereum Layer 2 Network After Two Years of Operation

Blast, a Layer 2 network built on Ethereum, has announced its shutdown after two years of operation, citing that the costs of maintaining the network have exceeded its revenue. The team stated on Friday that they no longer see a viable path to make Blast economically sustainable.

Founded by Tieshun Roquerre, known as Pacman, Blast initially attracted significant attention, raising over $2 billion in deposits before its mainnet launch in February 2024. However, activity on the network has dwindled, with current total value locked (TVL) dropping to approximately $65 million from its peak.

Users are being urged to withdraw their assets from Blast to the Ethereum mainnet, with a deadline set for October 26. The network plans to temporarily suspend withdrawals while it unwinds its positions with Lido, a staking service, which is expected to take about a week. After this period, regular withdrawals will resume with a reduced delay of 24 hours.

Blast's decision to shut down comes as it reported earning only $110 in chain revenue in the past day, highlighting the financial strain the network has faced. The BLAST token has also seen a significant decline, trading around 98% below its all-time high.

The team expressed regret over the situation, emphasizing their commitment to ensuring that users can safely transfer their assets back to Ethereum. As the network winds down, users will need to interact directly with Blast's bridge contracts on Ethereum after the October 26 deadline.