Blast to wind down Ethereum layer-2 after 98% asset drop

Blast will wind down its Ethereum layer-2 network after operating costs exceeded revenue, the team announced on Oct. 2, giving users until Oct. 26 to withdraw through its interface. The CoinDesk report said the network’s total value locked fell from more than $2 billion in June 2024 to about $32 million.

Blast said it saw no credible path to making the chain economically sustainable. CoinDesk, citing DeFiLlama data, reported that Blast generated $1,793 in network revenue last month, down from about $3.5 million in June 2024.

Why is Blast shutting down?

The team said maintaining the network now costs more than the layer-2 earns. Blast launched in 2023 with built-in yield features for Ether and stablecoin balances; more than $2.3 billion was locked in its bridge by its February 2024 mainnet launch, according to TokenPost’s report.

That early capital has since left: the remaining $32 million is about 98% below the June 2024 peak, according to CoinDesk. The team said its priority is to manage the shutdown and move users’ assets back to Ethereum mainnet.

How long can users withdraw through Blast’s interface?

Users can withdraw through the normal interface until Oct. 26, after which they will need to interact directly with Blast’s bridge contracts on Ethereum, CoinDesk reported. Blast said withdrawals will pause for about a week while it withdraws assets held through Lido, then resume with a 24-hour delay.

Assets will remain withdrawable after Oct. 26, TokenPost reported, but users will need to use the bridge contracts. Blast said it plans to publish instructions before the deadline.

Sources

• CoinDesk report — coindesk.com
• TokenPost’s report — tokenpost.com