Ethereum · Coinbase · CoinDesk
At its launch, Blast drew heavy interest early
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The chain’s economics deteriorated quickly as speculative capital moved elsewhere and activity faded.
Key facts
- Total value locked peaked over $2 billion in June 2024, according to DeFiLlama, and has since fallen to only $32 million
- Its native token, BLAST, fell 19% after the announcement, extending a steep decline since its debut
- Users have until Oct. 26 to withdraw assets to Ethereum through Blast's interface, the team said in the X post
- Ethereum layer-2 network Blast is shutting down, a little over two years after its launch, as fading activity has left the blockchain unable to cover its operating costs
Summary
Blast said it will shut down after concluding that its Ethereum layer-2 network no longer makes economic sense to operate. The closure points to consolidation among blockchains as security costs rise and platforms such as Coinbase and Robinhood build their own networks. Blast activity has dried up after its speculative peak, with assets on the network falling 98% from $2.2 billion in June 2024. Ethereum layer-2 network Blast is shutting down, a little over two years after its launch, as fading activity has left the blockchain unable to cover its operating costs. “Unfortunately, the economics of operating the chain no longer make sense," the project said Friday in a post announcing the closure.