【L2 Project Blast Announces Shutdown Due to Economic Unsustainability, Withdrawals Limited Until October 26】
Blast officially announced it will stop operating. The core reason is that the cost of maintaining the network exceeds the on-chain revenue it generates, and the team has determined that there is no viable economically sustainable path forward. Blast was launched by Blur’s founder, went live in early 2024, and previously attracted funding through incentive campaigns. However, its recent average daily on-chain revenue is only about $11, DeFi TVL is around $32 million, and daily active addresses are approximately 1,700. The official advises users to withdraw their on-chain assets and Blast PWA balances from the Ethereum mainnet as soon as possible. During the period when the Lido assets held in Blast are being exited (expected to take about a week), withdrawal functionality will be temporarily unavailable. Users must complete withdrawals through the standard interface before October 26; afterward, they will need to directly interact with the Blast Bridge contract on Ethereum L1. The Defiant reports that the official bridge still has around $63.5 million awaiting withdrawal. This shutdown highlights the severe financial sustainability challenges faced by L2 projects once the incentive bubble fades. The return of funds will directly affect Ethereum L1 liquidity and the valuation of related assets. Going forward, it will be important to monitor network congestion during peak withdrawal periods and the details of any published instructions for operating the Bridge contract.
Blast officially announced it will stop operating. The core reason is that the cost of maintaining the network exceeds the on-chain revenue it generates, and the team has determined that there is no viable economically sustainable path forward. Blast was launched by Blur’s founder, went live in early 2024, and previously attracted funding through incentive campaigns. However, its recent average daily on-chain revenue is only about $11, DeFi TVL is around $32 million, and daily active addresses are approximately 1,700. The official advises users to withdraw their on-chain assets and Blast PWA balances from the Ethereum mainnet as soon as possible. During the period when the Lido assets held in Blast are being exited (expected to take about a week), withdrawal functionality will be temporarily unavailable. Users must complete withdrawals through the standard interface before October 26; afterward, they will need to directly interact with the Blast Bridge contract on Ethereum L1. The Defiant reports that the official bridge still has around $63.5 million awaiting withdrawal. This shutdown highlights the severe financial sustainability challenges faced by L2 projects once the incentive bubble fades. The return of funds will directly affect Ethereum L1 liquidity and the valuation of related assets. Going forward, it will be important to monitor network congestion during peak withdrawal periods and the details of any published instructions for operating the Bridge contract.