7/102 sources · 2 publishersUpdated Oct 8, 20:25 UTC
Blast layer‑2 network announces shutdown due to unsustainable costs
Ethereum’s Blast layer‑2 network said it will cease operations because operating expenses now exceed revenue. The team gave users until October 26 to move assets back to the Ethereum mainnet, after which withdrawals must be done directly via bridge contracts. Blast had raised $20 million from investors and once held about $2.2 billion in locked value, which has fallen more than 98% to roughly $32 million.
Why it matters
Investors must withdraw their funds by the deadline, and the shutdown highlights sustainability challenges for Ethereum roll‑ups, potentially dampening confidence in other layer‑2 solutions.
Key facts
- 1Blast announced it will shut down because maintenance costs exceed revenues. cryptonews.net
- 2Users must withdraw assets to Ethereum mainnet by October 26. cryptonews.net
- 3The network raised $20 million from investors such as Paradigm and Standard Crypto. cryptonews.net
- 4Blast’s locked value peaked at about $2.2 billion in June 2024 and fell by more than 98% to $32 million as of October 2. cointribune.com
- 5Founder Tieshun “Pacman” Roquerre also founded the NFT marketplace Blur. cointribune.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.