Blast, the Paradigm-backed Ethereum Layer 2 network, is winding down because operating costs exceed the revenue it generates. Users have until Oct. 26, 2026 to withdraw through its normal interface, after which they must use Blast's bridge contracts directly on Ethereum.
Blast said on Oct. 2 that it will shut down its network, with costs of running the chain now outpacing revenue and no credible path to economic sustainability in sight. The network's total value locked has fallen to a little over $32 million, down sharply from more than $2 billion ahead of its February 2024 mainnet launch.
The project put the decision in its announcement: "the economics of operating the chain no longer make sense."
Withdrawals pause before the Oct. 26 deadline
The team will first withdraw Blast's Lido assets, a process expected to take about a week. User withdrawals will be temporarily unavailable during that window. Once it finishes, withdrawals resume with a 24-hour delay. Users can keep withdrawing through Blast's standard interface until Oct. 26.
After that date, assets stay withdrawable, but only by interacting directly with Blast's bridge contracts on Ethereum mainnet. The team said it will publish detailed instructions for that process before the deadline arrives.
From $2 billion in TVL to a wind-down
Blast went live in November 2023 following a $20 million funding round led by Paradigm and Standard Crypto, and it drew nearly 200,000 early-access users before exceeding $2 billion in TVL ahead of mainnet. The project pitched native yield for ETH and stablecoins, at one point promoting more than 50% APY on USD for holders of its BLAST token.
That token fell 17% on Friday, cutting its market cap to around $23 million. The announcement marks the end of a chain that, as crypto.news notes, was built by Blur founder Pacman with Paradigm's backing.
Sources: The Block, crypto.news, Coinpedia
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