Market Flux Event
Paradigm-Backed Ethereum Layer-2 Blast Shuts Down After TVL Plunges 98% From $2.3 Billion Peak
Read this in the Market Flux appBlast, a Paradigm-backed Ethereum layer-2 network that once held more than $2.3 billion in total value locked, announced it is winding down operations after a collapse in activity left operating costs exceeding revenue with no credible path to economic sustainability. The network peaked around June 2024 and has since shed roughly 98% of its assets, with TVL now standing between $32 million and $51 million depending on the source, and daily chain revenue falling to as little as $110.
Blast has asked all remaining users to withdraw their assets to Ethereum mainnet before October 26, 2026, the deadline the team set for the shutdown. The closure reflects broader consolidation pressure facing smaller Ethereum layer-2 networks as security costs rise and larger platforms backed by companies such as Coinbase and Robinhood compete for the same users and liquidity.
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Sources
- beincrypto.comEthereum Network Blast Is Shutting Down: Who Controls Users' Last $51 Million?
- CoindeskOnce a $2 billion Ethereum layer-2, Blast is shutting down after assets plunge 98%
- Coin DeskOnce a $2 billion Ethereum layer-2, Blast is shutting down after assets plunge 98%
- decrypt.coOnce a $2.3 Billion Network, Ethereum Layer-2 Blast Is Shutting Down
- tokenpost.comBlast Will Wind Down Its Ethereum Layer-2 Network
- news.bitcoin.comEthereum Layer 2 Network Blast to Shut Down After Revenue Collapse
- cointelegraph.comBlast to wind down Ethereum L2 after costs outpace revenue
- CoinGapeMedia🚨 LATEST: #Ethereum Layer 2 Blast is shutting down, citing #unsustainable operating #costs that now exceed revenue. The network plans to wind down its operations and transition toward an orderly #shutdown.