Blast, once one of Ethereum’s largest layer-2 networks by total value locked, is winding down operations after saying the cost of running the chain has overtaken the revenue it generates. The project is asking users to move their assets back to Ethereum’s mainnet before an upcoming withdrawal deadline.
According to Cointelegraph, Blast said on X that it could see no credible route to making the network economically sustainable. The team said its original aim was to create a self-sustaining chain for users and developers, but that the economics of operating it no longer made sense.
Withdrawal timetable for Blast users
Blast plans to shorten its withdrawal delay to 24 hours. Withdrawals will first be unavailable temporarily while the network unwinds its assets held through Lido, a process expected to take about a week.
Users can continue withdrawing through Blast’s interface until Oct. 26. After that date, their assets will not disappear, but users will need to interact directly with Blast’s bridge contracts on Ethereum to complete withdrawals.
The project said it would publish instructions for using those contracts before the deadline. It is encouraging users to return their funds to Ethereum mainnet ahead of Oct. 26, where the assets will no longer depend on Blast’s user interface for withdrawal access.
A layer-2 network processes transactions away from Ethereum’s main chain and uses Ethereum for settlement or security-related functions. Blast’s planned closure means its users must transfer assets back to the underlying blockchain rather than continue using the network as an active layer-2 platform.
From a major launch to a steep decline
Blast was created by Tieshun “Pacman” Roquerre, who also founded NFT marketplace Blur. Blur launched in October 2022 and rapidly challenged OpenSea by focusing on professional traders and using token incentives. By the end of that year, Blur had overtaken OpenSea in trading volume, and it extended that lead in early 2023 amid an airdrop and trader rewards.
Roquerre introduced Blast in November 2023 with native yield features for Ether and stablecoins, alongside a points program connected to an expected token airdrop. The approach drew more than $2 billion in deposits before Blast’s mainnet launched in February 2024.
That momentum did not last. Blast’s decentralized-finance total value locked reached roughly $2.2 billion in June 2024, but has since fallen by more than 98%, based on DeFiLlama data cited in the report. Blur experienced a similar contraction: its total value locked climbed above $200 million at its early-2024 peak and is now about $27 million.
Current crypto market picture
Moneyiar market data at 09:08-09:09 on Oct. 3, 2026, showed Ethereum at $2,684.73, down 2.42% over 24 hours and 0.18% over seven days. Shiba Inu was $0.000005658, down 4.81% daily and 4.01% weekly. Uniswap traded at $9.24, up 2.29% in 24 hours but down 4.56% over seven days, while Pepe was $0.0000042427, down 7.32% daily and 4.28% weekly.
