Blast Layer-2 Network to Shut Down
Ethereum layer-2 network Blast is shutting down operations after operating costs exceeded revenue generated by the chain, according to a report by Cointelegraph. In a statement posted to social media, the Blast team stated there is no credible path to economic sustainability and urged users to withdraw their assets to the Ethereum mainnet.
Blast plans to reduce its withdrawal delay to 24 hours, though withdrawals will be temporarily paused while the project unwinds its Lido assets over approximately one week. Users have until October 26 to withdraw funds directly through the Blast interface. After that date, assets will remain accessible, but withdrawals will require manual interaction with the Blast bridge contracts on Ethereum, with instructions to be published prior to the deadline.
Founded by Tieshun Roquerre, who also created the NFT marketplace Blur, Blast launched in late 2023 offering native yield on Ether and stablecoins alongside a points program. The incentive strategy quickly attracted more than $2 billion in deposits prior to its mainnet launch in February 2024. However, the network struggled to maintain growth amid a broader downturn in the non-fungible token market and declining decentralized finance activity.
According to DeFiLlama data cited by Cointelegraph, the total value locked on Blast has declined by more than 98% since peaking at approximately $2.2 billion in June 2024. The companion marketplace Blur has experienced a similar contraction, with its total value locked falling from over $200 million at its early 2024 peak to about $27 million.
Based on reporting by cointelegraph.com.
