Blast, an Ethereum Layer 2 network, is ceasing operations due to lack of financial sustainability. The team stated that maintenance costs currently exceed the revenue generated by the chain, with no viable solution available. In its final days, the network recorded daily chain revenue of just $110.
The project, founded by Tieshun Roquerre, previously reached a peak total value locked of $2,24 billion in June 2024. Data from DefiLlama indicates that this figure has since plummeted by nearly 99 percent to $32,3 million. The native BLAST token price dropped by 19 percent following the announcement.
According to L2BEAT, approximately $51 million in assets remains in Blast contracts, with $46,6 million held in staked ETH via Lido. Users have until October 26 to utilize the standard application for withdrawals. After this date, they must interact directly with Ethereum contracts.
The network's security architecture is managed by five keyholders, where any three can pause withdrawals or modify contracts. L2BEAT has highlighted risks regarding the chain's fraud-proof system, noting that it never fully functioned, which could theoretically allow for the finalization of invalid states.
