The Ethereum layer-2 network Blast is ceasing operations due to unprofitable maintenance costs. Once boasting assets of over $2.3 billion, Blast announced its closure, stating that operational expenses exceed revenues. Users have the opportunity to withdraw their assets until October 26, 2026. After this date, withdrawals will only be possible through bridge contracts on Ethereum. The Blast team noted: "Unfortunately, the economics of operating the chain no longer make sense." The announcement revealed that in the last month, the network managed to earn only $1,793 in usage revenue, while peak revenue in June 2024 was around $3.5 million. Since the peak of activity, a cold market has led to a 98% drop in assets from $2.3 billion to $32 million.
At its launch, Blast attracted a large number of users, raising over $1.1 billion before its official launch in 2024, partly due to expectations of token giveaways. However, as speculative interest began to wane, the project's economics quickly deteriorated. As a result of its closure, Blast joins other Ethereum layer-2 projects, such as Zero Network and Silicon Network, which also ceased operations this year.
With the emergence of proprietary networks from major platforms like Coinbase and Robinhood, competition in blockchain technology is becoming increasingly fierce. Consequently, the costs of security and development are rising, leaving smaller projects struggling to attract users and developers. The shutdown of Blast is yet another sign of the crisis in the blockchain technology space, given the current economic realities.
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