Key facts
- Ethereum layer-2 network Blast is shutting down.
- Blast cited unsustainable operating costs and a lack of a credible path to economic sustainability.
- Users have until October 26 to withdraw assets through Blast's interface.
- Blast once held over $2.3 billion in assets.
- Blast was launched in November 2023 by the team behind NFT marketplace Blur.
- Paradigm co-led Blast's $20 million seed round.
Blast, an Ethereum layer-2 network that attracted over $2.3 billion in assets, is ceasing operations due to unsustainable costs. The team announced on Friday that maintaining the network costs more than it generates, with no clear path to economic viability.
Users are instructed to withdraw their assets back to Ethereum's mainnet via Blast's interface by October 26. Following this deadline, funds will still be accessible but will require direct interaction with Blast's bridge contracts on Ethereum. The network will pause withdrawals for approximately one week to move its assets out of the Lido liquid staking protocol before reducing the withdrawal delay to 24 hours.
Launched in November 2023 by the creators of the NFT marketplace Blur, Blast offered built-in yield on ETH and stablecoin balances. It secured a $20 million seed round co-led by Paradigm. At its peak, the network had over $2.3 billion locked in its bridge.
Blast's challenges included a brief halt in block production following Ethereum's Dencun upgrade in March 2024 and a June airdrop that disappointed many users. The total value locked on Blast had already declined significantly from its peak.
Blast is not the only Ethereum layer-2 to shut down this year. Zerion's Zero Network began winding down in May, and Silicon Network, linked to South Korean exchange Korbit, stopped accepting deposits in September and is allowing withdrawals until December 31.