Ethereum Layer-2 Blast Shuts Down as Assets Plunge 98%

Ethereum Layer-2 Blast — The Ethereum layer-2 scaling network Blast is shutting down, its team announced, concluding that operating the chain no longer makes economic sense.

In a post on Friday, the project stated that the ongoing costs of maintaining the network now exceed the revenue it generates, and it sees no credible path to sustainability. The decision marks the end for a network that once held over $2.2 billion in total value locked (TVL) at its peak in June 2024.

Activity on Blast has largely dried up since its speculative highs, with assets on the network plunging approximately 98% from that peak. The closure points to ongoing consolidation in the competitive layer-2 sector, where rising security costs and competition from major platforms like Coinbase and Robinhood building their own networks have increased pressure.

Blast launched just over two years ago, positioning itself as a high-speed, low-cost alternative for transactions on the Ethereum blockchain. The team’s announcement did not specify a precise timeline for the wind-down but indicated the process would begin soon.