CoinDesk
Blast is shutting down its Ethereum layer-2 network after concluding that operating costs exceed the revenue it generates. Assets on the chain have fallen from a $2.2 billion peak in June 2024 to $32 million, a drop of about 98%. Blast generated just $1,793 in network revenue last month, compared with about $3.5 million in June 2024. Users have until Oct. 26 to withdraw to Ethereum through Blast’s interface.
Why it matters
Blast attracted more than $1.1 billion in deposits before its network went live in 2024, partly on expectations of a token airdrop. That early demand did not translate into enough sustained activity to cover the costs of running the chain. Blast said it sees no credible path to making the network economically sustainable.
The closure illustrates the pressure on smaller blockchains as they compete for developers, users and transaction fees. Development, infrastructure and security still require spending after activity fades. Meanwhile, large platforms with built-in distribution, including Coinbase and Robinhood, are building networks of their own.
Market impact
Blast’s native token, BLAST, fell 19% after the announcement and is down about 98% from its debut. The shutdown puts both the token’s decline and the chain’s shrinking asset base in focus: neither early deposits nor a speculative peak kept the network viable.
After Oct. 26, users will need to interact directly with bridge contracts to withdraw assets, rather than use Blast’s interface. That deadline is the immediate practical consideration for anyone still holding assets on the network.
Frequently asked questions
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Why is Blast shutting down its layer-2 network?
Blast said the ongoing costs of operating the network exceed its revenue and that it sees no credible path to making the chain economically sustainable.
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How far have assets on Blast fallen from their peak?
Assets on Blast fell about 98%, from a $2.2 billion peak in June 2024 to $32 million.
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How much revenue did the Blast network generate last month?
Blast generated $1,793 in revenue from network usage last month, compared with about $3.5 million in June 2024.
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What happened to BLAST after the shutdown announcement?
BLAST fell 19% after the announcement. The token is down about 98% from its debut.
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How can users withdraw assets from Blast after Oct. 26?
Users can withdraw to Ethereum through Blast’s interface until Oct. 26. After that, withdrawals will require direct interaction with bridge contracts.
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