Paradigm-Backed Layer 2 Blast to Wind Down Network as Costs Outweigh Revenue

Layer 2 Blast — The Paradigm-backed Ethereum Layer 2 network Blast is winding down operations after its operational costs consistently exceeded revenue, with users given until October 26 to withdraw their funds.

The network, which launched in 2023 with significant venture capital backing, is shutting down its core infrastructure. Users must access the official Blast application to bridge their assets back to the Ethereum mainnet before the late-October deadline.

This closure highlights the ongoing economic challenges facing Layer 2 scaling solutions, which must balance user growth with sustainable revenue models. Blast’s inability to maintain this balance has led to its termination, marking one of the more notable shutdowns in the competitive L2 sector.

The move will require its user base to migrate assets, potentially increasing activity on alternative scaling networks in the coming weeks as the withdrawal window closes.