Blast layer-2 shutdown is now official. The Ethereum layer-2 network is closing after operating costs exceeded revenue. Consequently, the team urges users to move assets to Ethereum mainnet.
Why the Blast layer-2 shutdown happened
In a Friday post on X, Blast said it sees no “credible path” to sustainability. Therefore, it asked users to withdraw assets. “We launched Blast with the goal of building a self-sustaining chain,” the team said. “Unfortunately, the economics no longer make sense.”
Withdrawal details and deadline
The network will reduce its withdrawal delay to 24 hours. However, withdrawals are temporarily unavailable. Blast is unwinding its Lido assets, which takes about a week. Users have until October 26 to withdraw through Blast’s interface. After that, assets remain accessible. But withdrawals will require direct interaction with Blast bridge contracts on Ethereum. Blast will publish instructions before the cutoff.
Blast emerged from Blur’s NFT boom
Tieshun “Pacman” Roquerre founded Blast. He also founded NFT marketplace Blur. Blur launched in October 2022 and challenged OpenSea. By late 2022, Blur surpassed OpenSea in trading volume. In November 2023, Roquerre unveiled Blast. It offered native yield on ETH and stablecoins. It also had a points program for an anticipated airdrop. This attracted over $2 billion in deposits before mainnet launched in February 2024.
Growth proved difficult to sustain
However, Blast’s growth was hard to maintain. The NFT market downturn hurt. Its DeFi TVL peaked at roughly $2.2 billion in June 2024. Since then, it fell by more than 98%, per DeFiLlama. Blur also declined. Its TVL peaked above $200 million in early 2024. It now stands at about $27 million.
What users should do now
Users should withdraw assets before October 26. After that, they must use bridge contracts directly. Blast will provide instructions. Therefore, acting before the deadline is crucial.