Blockchain networks face revenue crisis as Blast announces shutdown

Economic activity in the blockchain sector is increasingly concentrated among a small number of networks. According to data from DefiLlama, 399 out of 558 monitored networks generated no fees in a recent 24-hour period. Furthermore, 514 networks recorded fees under $1,000, and 443 networks generated less than $10.

This trend is highlighted by the announced shutdown of Blast, a prominent Ethereum Layer 2 network launched in November 2023 by Tieshun ‘Pacman’ Roquerre. The Blast team stated that the costs of maintaining the network have exceeded its generated revenue, making continued operation unsustainable.

Blast’s total value locked (TVL) has declined significantly from a peak of over $2.2 billion in June 2024 to approximately $32 million. Monthly revenues have also dropped from roughly $3.5 million to just a few thousand dollars. Users have until October 26 to repatriate assets to Ethereum via the standard interface; after that date, they must use the Blast bridge.