Ethereum: Blast shuts down its network after losing 98% of its activity
Blast announced on Friday the shutdown of its Ethereum Layer 2 network. Operating costs now exceed the revenue generated by the chain, and the team no longer sees «any credible path» to a sustainable model. Users have until October 26 to withdraw their assets.
Blast urges users to withdraw their assets to Ethereum before October 26, then via the bridge contracts.
The withdrawal deadline will become 24 hours, after a pause of approximately one week while Blast withdraws its assets from Lido.
Its value locked has fallen from approximately $2.2 billion in June 2024 to approximately $32 million today.
A clean shutdown and a countdown
Ethereum’s Layer 2s are going through a turbulent period, since the drop in fees on the main network shrank the pie. Blast is the latest victim, with an announcement made on Friday. The network is closing, and users are invited to repatriate their assets to Ethereum before October 26.
The team outlined its decision in a message posted on X. «Blast’s maintenance costs exceed the revenue generated by Layer 2, and we don’t see a credible path toward an economically sustainable model,» they wrote.
The withdrawal deadline will become 24 hours after an approximately one-week suspension, while Blast unwinds its assets deposited in Lido. After October 26, users will need to interact directly with the bridge contracts on Ethereum.
$ETH
$X
$RED
#Ethereum
Blast announced on Friday the shutdown of its Ethereum Layer 2 network. Operating costs now exceed the revenue generated by the chain, and the team no longer sees «any credible path» to a sustainable model. Users have until October 26 to withdraw their assets.
Blast urges users to withdraw their assets to Ethereum before October 26, then via the bridge contracts.
The withdrawal deadline will become 24 hours, after a pause of approximately one week while Blast withdraws its assets from Lido.
Its value locked has fallen from approximately $2.2 billion in June 2024 to approximately $32 million today.
A clean shutdown and a countdown
Ethereum’s Layer 2s are going through a turbulent period, since the drop in fees on the main network shrank the pie. Blast is the latest victim, with an announcement made on Friday. The network is closing, and users are invited to repatriate their assets to Ethereum before October 26.
The team outlined its decision in a message posted on X. «Blast’s maintenance costs exceed the revenue generated by Layer 2, and we don’t see a credible path toward an economically sustainable model,» they wrote.
The withdrawal deadline will become 24 hours after an approximately one-week suspension, while Blast unwinds its assets deposited in Lido. After October 26, users will need to interact directly with the bridge contracts on Ethereum.
$ETH
$X
$RED
#Ethereum
