Ethereum · Decrypt
Once a $2.3 Billion Network, Ethereum Layer-2 Blast Is Shutting Down
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Blast, the Ethereum layer-2 network that once drew billions of dollars with promises of built-in yield and airdrops, is calling it quits.
Key facts
- Users deposited more than $1.1 billion before the network went live, and more than $2.3 billion was locked in its bridge by the February 2024 mainnet launch
- Its June 2024 airdrop set aside $354 million worth of BLAST tokens for users but left many disappointed
- Silicon Network, an Ethereum layer-2 associated with South Korean exchange Korbit, stopped accepting deposits Sept. 2
- Launched in November 2023 by the team behind NFT marketplace Blur, Blast pitched automatic yield on ETH and stablecoin balances
Summary
Blast, the Paradigm-backed Ethereum layer-2, is shutting down, saying it costs more to run than it earns and has no credible path to sustainability. Users have until Oct. 26 to withdraw through Blast's interface. Once holding more than $2.3 billion, Blast joins Zero Network and Silicon Network among Ethereum layer-2s winding down this year. The team said Friday on X that maintaining the network now costs more than it earns, and that it sees no credible path to making the chain economically sustainable.