Ethereum layer-2 network, Blast, will shut down after more than two years of operations saying the cost of maintaining the blockchain has exceeded the revenue it generates.
Blast said that it saw no credible path to making the network economically sustainable and would wind down operations. Its total value locked (TVL) has fallen to about $32 million from a peak of more than $2.2 billion in June 2024, a decline of about 98%, according to DeFiLlama data.
The network’s revenue from usage fell to about $1,793 in September 2026 from a peak of roughly $3.5 million in June 2024, according to DeFiLlama data. Its BLAST token dropped by almost 50% following the shutdown announcement and is down about 98% from its launch.
The $BLAST token tanks following the @blast #Ethereum L2 shutdown announcement. pic.twitter.com/u99EScb0sv
— BitKE (@BitcoinKE) October 3, 2026
Blast attracted more than $1.1 billion in deposits even before its mainnet launched in February 2024, helped by its native-yield offering and expectations of a token airdrop. The network’s TVL later surpassed $2 billion, with nearly 200,000 early-access users.
MILESTONE | Newly Launched Ethereum Layer 2, Blast, Draws Over $500 Million in Deposits in a Few Days
The shutdown comes as competition among Ethereum layer-2 networks increases and major crypto platforms including Coinbase and Robinhood develop their own blockchain networks adding pressure on smaller networks to generate sufficient activity and revenue to cover operating and security costs.
MILESTONE | Robinhood Chain Overtakes Ethereum in Daily Revenue 2 Months After Launch
Blast has asked users to withdraw their assets to Ethereum’s mainnet. Withdrawals will temporarily pause while the network unwinds assets held through Lido, a process expected to take about a week.
Users will be able to withdraw through Blast’s interface until October 26 2026. After that, assets will remain accessible but users will need to interact directly with Blast’s bridge contracts on Ethereum.
REALITY CHECK | Former Leading Web3 Gaming Studio Shuts Down After Onchain Gaming Bet Fails
Stay tuned to BitKE for the latest crypto news updates.
Join our WhatsApp channel here.
Follow us on X for the latest posts and updates
Join and interact with our Telegram community
________