Once a $2.3 Billion Network, Ethereum Layer-2 Blast Is Shutting Down
Blast, the Ethereum layer-2 network launched in late 2023 with promises of automatic yield and airdrops, is shutting down because operating costs now exceed revenue and no sustainable business path is clear. Users must move assets back to Ethereum mainnet, including funds in its PWA. Withdrawals will pause for about a week while assets are pulled out of Lido, then resume with a 24-hour delay. Users can withdraw through Blast’s normal interface until Oct. 26; after that, withdrawals will still be possible via Blast’s Ethereum bridge contracts. Blast was created by the Blur team and quickly attracted over $2.3 billion in locked value before mainnet. It later faced setbacks, including a block-production halt after Ethereum’s Dencun upgrade and a poorly received token airdrop. Its shutdown follows other Ethereum layer-2 closures, including Zero Network and Silicon Network, as the broader crypto sector continues to contract.
