Blast to wind down Ethereum L2 after costs outpace revenue
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Written by
Simonas Brazionis - Updated 2026-10-13 06:35:51
The Ethereum L2 network Blast is ceasing operations due to its operating costs surpassing generated revenue. The platform announced on Friday that it does not foresee a viable path to economic sustainability, leading to its closure.
Users are advised to withdraw their assets to the Ethereum mainnet. The withdrawal delay will be reduced to 24 hours, though withdrawals will be temporarily paused while Blast liquidates its Lido assets, a process estimated to take approximately one week.
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Withdrawal Process and Deadlines
Users have until October 26 to withdraw assets via the Blast interface. After this date, assets will remain accessible, but withdrawals will necessitate direct interaction with Blast bridge contracts on Ethereum. Blast will provide instructions for direct bridge withdrawals before the October 26 deadline.
The platform encouraged users to transfer their assets to the Ethereum mainnet prior to this date to ensure a smooth transition and avoid potential complications with direct contract interactions.
Blast's Origins and Growth
Blast was established by Tieshun “Pacman” Roquerre, founder of the NFT marketplace Blur, which launched in October 2022. Blur gained prominence by targeting professional traders with token incentives, surpassing OpenSea in trading volume by late 2022 and extending its lead into early 2023, partly due to its token airdrop and trader rewards.
Roquerre introduced Blast in November 2023, offering native yield on Ether (ETH) and stablecoins, alongside a points program linked to an anticipated token airdrop. This strategy successfully attracted over $2 billion in deposits before its mainnet launch in February 2024, demonstrating significant initial market interest.
Unsustainable Expansion and Market Decline
Despite initial growth, Blast's expansion became unsustainable amidst a general decline in the NFT market. Its DeFi total value locked (TVL) has consistently decreased since reaching a peak of approximately $2.2 billion in June 2024, experiencing a more than 98% reduction since then, according to DeFiLlama data.
Blur has also seen a similar downturn, with its TVL, which exceeded $200 million at its early 2024 peak, now standing at approximately $27 million. This parallel decline highlights broader market challenges impacting related projects.
