Ethereum Layer-2 Network Blast Announces Shutdown Due to Unsustainable Operating Costs

Ethereum layer-2 network Blast announced its shutdown, stating that ongoing operating costs exceed the revenue generated by the chain and that it lacks a viable path to long-term economic sustainability. The network, which was launched in November 2023 by the team behind the Blur marketplace and raised $20 million in a seed round co-led by Paradigm, joins other layer-2 projects including Zero Network and Silicon Network in winding down operations.

Users have been instructed to withdraw their balances to Ethereum's mainnet before October 26 via the project's standard interface, including funds held in its progressive web app. Withdrawals are temporarily halted for roughly one week while Blast unwinds assets staked through Lido. Once resumed, withdrawal processing times will be reduced to 24 hours. After the October 26 deadline, users will only be able to retrieve funds by interacting directly with the network's bridge contracts on Ethereum.

Blast initially attracted substantial capital by offering native yields on Ether and stablecoins, accumulating more than $1.1 billion in pre-launch deposits and peaking above $2.3 billion in total value locked at its February 2024 mainnet debut. However, the chain encountered operational difficulties over its lifecycle, including a temporary halt in block production following Ethereum's Dencun upgrade in March 2024.