Ethereum layer-2 Blast shuts down after assets plunge 98%

Blast, the Ethereum layer-2 that once held more than $2 billion in crypto assets, is shutting down just over two years after launch, saying the cost of maintaining the network now exceeds the revenue it generates. Total value locked has fallen 98% from $2.2 billion in June 2024 to about $32 million, while network revenue dropped to roughly $1,800 last month from a $3.5 million peak.

• The BLAST token fell 19% on the announcement and is down about 98% from launch.
• Users can withdraw assets via Blast's interface until October 26; after that, withdrawals require interacting directly with bridge contracts.
• The closure reflects consolidation among blockchains as security and development costs persist while activity dries up and larger platforms like Coinbase and Robinhood launch competing networks.