Once a $2 billion Ethereum layer-2, Blast is shutting down after assets plunge 98%
The Ethereum layer-2 network Blast is shutting down after its total value locked plummeted from $2 billion to $32 million. The project cited unsustainable operating costs and a lack of revenue as the primary reasons for its closure.
Why it matters
The collapse of Blast illustrates the intense competition and economic volatility within the blockchain infrastructure market.
“Unfortunately, the economics of operating the chain no longer make sense," the project said Friday in a post announcing the closure. “The ongoing costs of maintaining Blast exceed the revenue generated by the L2, and we do not see a credible path to making the chain economically sustainable."
Its native token, BLAST, fell 19% after the announcement, extending a steep decline since its debut. The token is now down about 98% from launch.
At its launch, Blast drew heavy interest early on. Before the network even went live in 2024, users had deposited more than $1.1 billion, fueled in part by expectations of a token airdrop, CoinDesk reported at the time.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in