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[SITUATION] · [QUIET] · [TECHNOLOGY]

2 clusters · 16 sources · 1 days · First seen · Last updated

Blast Ethereum Layer 2 network shutdown

Overview

The Ethereum Layer 2 network Blast has announced its shutdown, citing that maintenance costs have exceeded generated revenue and leaving “no credible path to economic sustainability.” This development occurs amid a broader trend of revenue concentration in the blockchain sector, where a significant majority of monitored networks report minimal or zero fee generation.

Blast’s total value locked (TVL) has declined from a peak of over $2.2 billion in June 2024 to approximately $32 million. Following the announcement, the native BLAST token saw a price drop of roughly 99% from its historical high. In response, the South Korean exchange Upbit placed the token on a trading alert list and suspended deposits for its trading pairs.

The shutdown process involves a temporary one-week pause in withdrawals to allow for the unwinding of assets held in Lido. Users are instructed to repatriate assets to the Ethereum mainnet via the standard Blast interface by October 26, 2026. After this deadline, fund recovery will require interacting directly with Blast’s bridge contracts on the Ethereum mainnet.

Entities

BLASt · Tieshun Roquerre · Ethereum · Upbit · DefiLlama

Timeline

  1. [TECHNOLOGY] 14 sources
    Blast Ethereum Layer 2 network announces shutdown due to high costs

    Ethereum Layer 2 network Blast is shutting down due to unsustainable economics. TVL has dropped from $2 billion to $32 million, and users must withdraw assets via the standard interface by October 26, 2026.

  2. [TECHNOLOGY] 2 sources
    Blockchain networks face revenue crisis as Blast announces shutdown

    Data shows 399 of 558 tracked blockchains generated no fees in 24 hours, as the Ethereum Layer 2 network Blast announces a shutdown due to unsustainable maintenance costs.

Sources

ambcrypto.com · block-builders.de · blockcast.it · coinedition.com · coinpedia.org · cryptoast.fr · cryptoninjas.net · cryptoslate.com · cryptoticker.io · en.bitcoinsistemi.com · finex.cz · maddyness.com · mycryptoparadise.com · news.bitcoin.com · newsbit.nl · spacemoney.com.br