Ethereum Layer-2 Blast to Shut Down as Costs Exceed Revenue

Blast, an Ethereum layer-2 network that once held more than $2 billion in crypto assets, is shutting down, according to reports from CoinDesk, Cointelegraph and Decrypt.

The network said its operating costs now exceed the revenue it generates, Decrypt reported. Blast is advising users to withdraw their holdings and transfer them to Ethereum mainnet. Decrypt reported that users were asked to move assets before Oct. 26.

At its peak, Blast ranked among Ethereum's largest layer-2 networks measured by total value locked. CoinDesk reported that assets on the platform have fallen by 98% from an earlier high above $2 billion, while Decrypt cited a figure of $2.3 billion for the network at its height.

CoinDesk attributed the wind-down to a combination of declining activity, rising costs, and competition from larger platforms such as Coinbase and Robinhood, which have been developing their own networks.