Ethereum Layer-2 Blast Sets Oct. 26 Deadline for User Withdrawals

Blast, an Ethereum Layer-2 network that once held more than $2 billion in assets, is winding down after its operating costs outgrew its revenue, and users have until Oct. 26 to move their assets back to Ethereum’s mainnet.

The team announced the decision Oct. 2, saying the ongoing expense of maintaining the network exceeds the revenue it generates and that it sees no credible path to making operations sustainable. Blast is asking users to withdraw assets, including balances held in its app.

The shutdown marks a sharp reversal for a network that drew more than $1.1 billion in deposits before its mainnet launch. Its growth was tied in part to native yield features and a points program that helped build anticipation for an airdrop.

Blast’s retreat highlights the challenge of sustaining a blockchain network after incentives attract users. The withdrawal deadline is Oct. 26.