Blast to wind down Ethereum network as assets fall 98%

Blast will wind down its Ethereum layer-2 network after costs overtook revenue, leaving users a limited time to withdraw through its usual interface. The network, which processes transactions alongside Ethereum, had about $32 million in assets left, down roughly 98% from its peak. Blast announced the decision on Oct. 2, according to The Block’s report on the wind-down.

Why is Blast closing the network?

Blast said the cost of maintaining the chain now exceeds the revenue it brings in, and the team sees no credible way to make it economically sustainable. The project launched with the goal of building a chain that could support itself, but has decided to wind it down.

The financial strain follows a steep decline in assets held on the network. Total value locked, or TVL—the value of crypto deposited in a network’s apps and contracts—peaked above $2 billion in June 2024. It had fallen to about $32 million by the time of the announcement, according to CoinDesk’s report, a drop of about 98%.

When can users withdraw their assets?

Blast is asking users to move their assets to Ethereum mainnet, including balances held in the Blast PWA. The team plans to withdraw Blast’s Lido assets first. That process is expected to take about a week, during which withdrawals will be temporarily unavailable.

After that, withdrawals are set to resume with a 24-hour delay. Users can use Blast’s normal interface until Oct. 26, 2026. After the deadline, assets will remain withdrawable, but users will have to interact directly with Blast’s bridge contracts on Ethereum. Blast said it will publish instructions before then.

What happens after the interface deadline?

Oct. 26 is the deadline for using Blast’s normal withdrawal interface, not the date the team says assets become inaccessible. Afterward, users will need to use the bridge contracts themselves to withdraw to Ethereum. The move makes the withdrawal route less direct, so users with funds on Blast will need to follow the team’s instructions before taking that step.

The wind-down ends a little over two years after Blast’s launch. Its fall from more than $2 billion in TVL to roughly $32 million leaves a much smaller pool of assets on the network as the team works through withdrawals.