Brief
Blast L2 to shut down as operating costs exceed revenue
Blast announced its closure, citing unsustainable economics and a withdrawal deadline of Oct. 26.
By Felo News Desk · Published
Ethereum layer‑2 network Blast is shutting down after operating costs exceeded the revenue it generated, the team said in a Friday post on X. The announcement warned users to withdraw their assets to Ethereum mainnet before the Oct. 26 deadline.
Blast will reduce its withdrawal delay to 24 hours, but withdrawals will be temporarily unavailable while the protocol unwinds its Lido assets, a process expected to take about a week. After Oct. 26, assets will remain accessible, though users must interact directly with the Blast bridge contracts on Ethereum; the team said it will publish instructions ahead of the cutoff.
Founded by Blur NFT marketplace creator Tieshun “Pacman” Roquerre, Blast launched in February 2024 after a November 2023 unveiling that attracted over $2 billion in deposits. Its DeFi total value locked has fallen more than 98 % since a June 2024 peak of roughly $2.2 billion, according to DeFiLlama data.
Key facts
- Blast will cease operations after costs outpaced revenue. (cointelegraph.com)
- Users must withdraw assets by Oct. 26 or use the bridge contracts. (cointelegraph.com)
- Blast’s DeFi TVL fell over 98 % from its June 2024 peak. (cointelegraph.com)
Sources
- [1] cointelegraph.com — originally reported as “Blast to Shut Down as Ethereum L2 Economics Fall Short”
