Ethereum L2 Blast to Wind Down, Sets October 26 Withdrawal Deadline
Highlights
- Blast will shut down after operating costs exceeded revenue and no sustainable path remained viable.
- Users have until October 26 to withdraw assets through Blast’s normal interface back to Ethereum.
- Withdrawals will pause during Lido asset unwinding, then resume with a reduced 24-hour withdrawal delay.
Blast will shut down its Ethereum layer 2 network after operating costs exceeded the revenue generated by the chain. The team has asked users to move assets back to Ethereum mainnet before October 26.
Blast states that it can no longer see a viable way to make the network economically viable. The decision comes more than two years after its mainnet launch in February 2024.
Blast Sets October 26 Deadline for Normal Withdrawals
Users can withdraw assets through Blast’s normal interface until October 26, including balances held in its progressive web app. Withdrawals will still be available after that date, but users will have to use bridge contracts on Ethereum directly.
In addition, as part of the shutdown procedure, Blast will reduce withdrawal delay to 24 hours. However, withdrawals will first pause while the team unwinds assets held through Lido.
That process will take approximately 1 week, and withdrawals will then begin afterwards with the shorter delay. Blast will provide detailed instructions on how to withdraw before the regular interface is closed.
Operating Costs Pushes Toward Shutdown
Blast said maintaining the network now costs more than the revenue generated by its layer 2 operations. The team added it does not “see a viable path toward sustainability over time.
“We launched Blast with the goal of building a self-sustaining chain for users and developers,” the team said. The economics of running the network are no longer viable, it added.
The team has not given specific numbers for its operating expenses or network revenue. The move also follows the broader discussion of the economics of Ethereum Layer 2 in the ecosystem.
In addition, the questions around L2 development have also grown as Ethereum and Base differed over transaction standards during recent technical discussions.
Blast Activity Falls From Early 2024 Levels
Blast attracted more than $2 billion in deposits before its mainnet went live in February 2024. The network drew users by offering native yield on ether and stablecoins.
Activity later declined, and DefiLlama currently lists the Ethereum Layer 2 with about $65 million in total value locked. BLAST has a market value near $29 million and trades around 98.6% below its June 2024 peak.
Blast was founded by Blur creator Tieshun Roquerre, known as Pacman, and became one of 2024’s closely watched rollups. The team now says its priority is helping users move funds back to Ethereum safely before the interface deadline.
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