Once a $2.3 Billion Network, Ethereum Layer-2 Blast Is Shutting Down
Blast said operating costs now exceed the revenue its Ethereum layer-2 generates and asked users to withdraw their assets to mainnet before Oct. 26.
Ethereum layer-2 network Blast is preparing to wind down operations after its costs surpassed revenue. In a recent X post, Blast stated it sees "no credible path" to make the network economically viable and advised users to withdraw assets to Ethereum mainnet. The team behind Blast launched the platform with the aim of creating a self-sustaining chain for users and developers.
However, the economics of running the chain are no longer feasible. Blast plans to reduce withdrawal processing time to 24 hours, while withdrawals will be temporarily unavailable as the team unwinds Lido assets, a process expected to take about a week. Users have until October 26 to withdraw through Blast's interface, after which assets will still be accessible, but withdrawals will require direct interaction with Blast's bridge contracts on Ethereum.
Blast's founder, Tieshun "Pacman" Roquerre, disclosed that the network will provide instructions for withdrawing directly through the bridge contracts before the October 26 deadline and urged users to transfer their assets to Ethereum mainnet before then.
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