Ethereum Layer-2 Blast to Wind Down, Cites Unsustainable Economics

Blast, the Ethereum layer-2 network that peaked above $2.3 billion in bridge deposits, is shutting down. The team said on Oct. 2 that operating costs now exceed revenue and no credible path to economic sustainability exists, prompting it to "wind Blast down." Users must withdraw assets to Ethereum's mainnet, including balances in Blast's progressive web app. Withdrawals will pause about a week while Blast pulls assets from Lido, after which the delay will be cut to 24 hours. Users have until Oct. 26 to exit via Blast's regular interface; afterward, funds remain accessible only through direct interaction with its Ethereum bridge contracts. Launched in November 2023 by the team behind NFT marketplace Blur, Blast promised automatic yield on ETH and stablecoin balances and raised a $20 million seed round co-led by Paradigm. It drew over $1.1 billion before its February 2024 mainnet launch. The network later stalled after Ethereum's Dencun upgrade and its June 2024 airdrop disappointed users as total value locked fell roughly 30% from peak.