TLDR
- Blast, an Ethereum layer-2 network, is shutting down after two years of operation
- The project’s native token BLAST has fallen about 98% since launch
- Total value locked on Blast dropped from over $2 billion to just $32 million
- Users have until October 26 to withdraw assets through Blast’s interface
- Blast was founded by the creator of NFT marketplace Blur
Blast, an Ethereum layer-2 network, announced it is shutting down after concluding the chain no longer makes financial sense to run.
Blast will be shutting down.
We launched Blast with the goal of building a self-sustaining chain for users and developers. Unfortunately, the economics of operating the chain no longer make sense: the ongoing costs of maintaining Blast exceed the revenue generated by the L2, and…
— Blast (@blast) October 2, 2026
The team shared the news in a post on X on Friday. They said operating costs now exceed the revenue the network brings in.
“The ongoing costs of maintaining Blast exceed the revenue generated by the L2, and we do not see a credible path to making the chain economically sustainable,” the project wrote.
The native token, BLAST, dropped 19% following the announcement. That decline added to a longer slide that has pushed the token down about 98% from its launch price.
Blast launched in 2024 after drawing strong early interest. Before the network even went live, users had deposited more than $1.1 billion. Much of that interest came from hopes of a future token airdrop.
How Blast’s Numbers Fell Apart
The network’s total value locked peaked at more than $2 billion in June 2024, according to data from DeFiLlama. Since then, it has dropped to about $32 million.
Blast network announces it will cease operations, causing $BLAST to dump 42%. pic.twitter.com/rqHBZpl3se
— CoinGecko (@coingecko) October 3, 2026
Revenue tells a similar story. Blast generated just $1,793 last month. That is down sharply from a peak of roughly $3.5 million in June 2024.
Running a blockchain network comes with ongoing costs. These include development, infrastructure, and security spending.
A recent rise in crypto exploits has pushed projects to spend more on security. Some researchers also say AI tools may make it easier for attackers to find weaknesses in code.
At the same time, competition among blockchain networks has grown. Larger companies with built-in user bases have launched their own networks.
Coinbase built a network called Base, using its exchange users and developers as a built-in audience. Robinhood launched its own Ethereum layer-2 network earlier this year and saw strong early activity.
These larger platforms make it harder for smaller, independent chains like Blast to compete for users and developers.
Blast’s Roots in the NFT Market
Blast was founded by Tieshun Roquerre, known online as Pacman. He also created the NFT marketplace Blur, which launched in 2022.
Blur grew quickly by offering token rewards to traders. It passed OpenSea in trading volume by the end of 2022 and kept growing into 2023.
Roquerre introduced Blast in November 2023. The network offered yield on ETH and stablecoins, along with a points program tied to an expected token airdrop.
That approach helped Blast collect more than $2 billion in deposits before its mainnet officially launched in February 2024.
Blast’s growth slowed as the broader NFT market cooled. Its total value locked has fallen steadily since its 2024 peak.
Blur has followed a similar pattern. Its total value locked peaked above $200 million in early 2024 and now sits at about $27 million.
Blast said it will reduce its withdrawal delay to 24 hours. Withdrawals will pause briefly while the team unwinds assets held with Lido, a process expected to take about a week.
Users have until October 26 to withdraw funds through Blast’s own interface. After that date, people will need to interact directly with Blast’s bridge contracts on Ethereum to access their assets.
The team said it will publish instructions for this direct withdrawal process before the deadline.
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