Blast Will Shut Down Its Ethereum Layer-2 Network After TVL Falls 98%

Blast plans to shut down its Ethereum layer-2 network after its total value locked fell about 98% from a peak above $2 billion, as the team said maintenance costs now exceed revenue.

The team announced the wind-down Oct. 2 and urged users to move their assets to Ethereum. Blast’s total value locked reached more than $2 billion in June 2024 and has since fallen to about $32 million. A latest available snapshot put the network’s DeFi value locked at about $31.5 million.

Blast plans to start withdrawing its Lido assets first, a process expected to take about a week. Withdrawals will be temporarily unavailable during that period, even though the withdrawal delay has been reduced to 24 hours.

Users can withdraw through Blast’s interface until Oct. 26. After that date, they will need to interact directly with the network’s bridge contracts on Ethereum.

Blast said it sees no credible path to making the network economically sustainable. Its closure comes as major crypto companies, including Coinbase and Robinhood, operate Ethereum-based networks of their own.