Blast shuts down its Ethereum layer-2 after costs exceed revenue, sets Oct. 26 withdrawal deadline
Blast is shutting its Ethereum layer-2, pausing withdrawals for about a week to unwind Lido and setting an Oct. 26, 2026 deadline to exit through its normal interface.
Why it matters
Blast took in more than $2 billion in deposits before its February 2024 mainnet launch, so the wind-down moves a large pool of user funds back to Ethereum mainnet through a roughly one-week withdrawal blackout. Decrypt reports Zero Network and Silicon Network also closed Ethereum layer-2s this year, and the reason Blast gave, operating costs above revenue, applies to rollups whose fees do not cover upkeep.
Where the sources disagree
Blast's value locked at the time of the shutdown
$20 million layer-2 network (CryptoSlate headline figure)
CryptoSlate, Crypto News (CryptoNews.net)
Roughly $65 million in total value locked (The Cryptonomist, cited by Bitcoin Insider)
Bitcoin Insider
About $32 million DeFi TVL (DeFiLlama, cited by Crypto News)
Crypto News (CryptoNews.net)
About $38 million secured by the platform (L2BEAT, cited by Crypto News)
Crypto News (CryptoNews.net)
Sources put the remaining value in the tens of millions but do not agree on the figure.
Peak value held by Blast
Once a $2.3 billion network (Decrypt)
Decrypt
More than $2 billion in DeFi assets and deposits (Crypto News Flash, Bitcoin Insider, Crypto News)
Crypto News Flash, Bitcoin Insider, Crypto News (CryptoNews.net)
Outlets cite different peaks for how much the network held before the decline.
How long Blast had been running when it closed
More than two years after the February 2024 mainnet launch (CoinGape)
CoinGape
Less than three years after the $20 million raise (Crypto News Flash)
Crypto News Flash
Nearly three years after the Nov. 20, 2023 funding disclosure (CryptoSlate, Crypto News)
CryptoSlate, Crypto News (CryptoNews.net)
Sources measure the elapsed time from different starting points, the November 2023 launch or the February 2024 mainnet launch.
Key facts
Blast is winding down its Ethereum layer-2, saying maintenance costs exceed the revenue the chain generates and that it sees no credible path to economic sustainability.
Reported by Crypto News Flash
Users have until Oct. 26, 2026 to withdraw through Blast's normal interface.
Reported by Crypto.News
Withdrawals will be unavailable for about a week while Blast unwinds its Lido assets, then resume with the withdrawal delay reduced to 24 hours.
Reported by Crypto News Flash
After Oct. 26, funds remain withdrawable only by interacting directly with Blast's bridge contracts on Ethereum, and the team says it will publish instructions before the deadline.
Reported by Crypto.News
Blast disclosed $20 million in funding from Paradigm and Standard Crypto on Nov. 20, 2023.
20,000,000 USDDisputed figureReported by Crypto News Flash
Blast held more than $2 billion in deposits before its February 2024 mainnet launch, with Decrypt citing a peak above $2.3 billion.
2,000,000,000 USDDisputed figureReported by Crypto News Flash
Sources disagree on Blast's remaining value locked, citing $20 million, roughly $65 million, about $32 million on DeFiLlama and about $38 million on L2BEAT.
Disputed figureReported by CryptoSlate
Blast was founded by Tieshun 'Pacman' Roquerre, who also created the Blur NFT marketplace.
Reported by Cointelegraph
What happened
Blast told users on Oct. 2, 2026 that it is winding down its Ethereum layer-2, saying the cost of maintaining the chain now exceeds the revenue it generates and that it sees no credible path to economic sustainability. The announcement came from the team of Tieshun 'Pacman' Roquerre, who also created the Blur NFT marketplace; Blast disclosed $20 million from Paradigm and Standard Crypto on Nov. 20, 2023. Under the plan, Blast will first pull its assets out of Lido, a step it expects to take about a week and during which withdrawals stop entirely, after which withdrawals resume with the delay cut to 24 hours. Users have until Oct. 26 to exit through Blast's normal interface, after which balances remain reachable only by interacting directly with Blast's bridge contracts on Ethereum, and the team says it will publish instructions before the deadline. How much value the closure returns is disputed: CryptoSlate's headline puts Blast at $20 million, The Cryptonomist as cited by Bitcoin Insider says roughly $65 million in total value locked, and Crypto News cites DeFiLlama at about $32 million and L2BEAT at about $38 million, against deposits of more than $2 billion before the February 2024 mainnet launch. Decrypt reports Blast joins Zero Network and Silicon Network among Ethereum layer-2s shutting down this year, and Crypto News reported the BLAST token down 17% on the announcement.
How the story developed
- Official statement
Blast posts shutdown announcement on X
The team says maintaining the chain costs more than it earns and asks users to move assets to Ethereum mainnet, including balances in the Blast PWA.
- First report
First report by Crypto News Flash
Blast Shuts Down Ethereum L2 as Revenue Model Breaks Down
- Update
First outlet reports the wind-down and the Oct. 26 exit deadline
Crypto News Flash reported the shutdown, the Lido-related withdrawal pause and the shortened 24-hour withdrawal delay.
- Independent corroboration
Independently corroborated by Crypto.News
Blast announces shutdown as network costs exceed Layer 2 revenue
- Resolution
Withdrawals through the regular Blast interface close
After this date assets stay accessible only through direct interaction with Blast's bridge contracts on Ethereum, with instructions promised beforehand.
- Update
Decrypt reports Blast's wind-down, citing a $2.3 billion peak and other2026 layer-2 closures
Decrypt said Blast joins Zero Network and Silicon Network among Ethereum layer-2s winding down this year.
- Update
Bitcoin Insider flags conflicting value locked figures
Bitcoin Insider noted that coverage agrees on the Oct. 26 deadline but diverges between a $20 million headline figure and a $65 million total-value-locked figure.
- Update
Crypto News cites DeFiLlama and L2BEAT readings for Blast
Crypto News reported roughly $32 million of DeFi TVL on DeFiLlama, about $38 million secured on L2BEAT with the fraud-proof system still under development, and a 17% fall in the BLAST token on the day of the announcement.
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 2 Oct 2026, 15:35 UTC: Crypto News Flash — 1 independent source, 1 reports
- 2 Oct 2026, 16:21 UTC: Crypto.News — 2 independent sources, 2 reports
- 2 Oct 2026, 16:30 UTC: Crypto News (CryptoNews.net) — 3 independent sources, 3 reports
- 2 Oct 2026, 17:47 UTC: Decrypt — 4 independent sources, 4 reports
- 2 Oct 2026, 18:12 UTC: CoinGape — 5 independent sources, 5 reports
- 2 Oct 2026, 18:24 UTC: Cointelegraph — 6 independent sources, 6 reports
- 2 Oct 2026, 18:33 UTC: Unchained — 7 independent sources, 7 reports
- 2 Oct 2026, 23:10 UTC: CryptoSlate — 8 independent sources, 8 reports
Affected entities
Also mentioned: United States, Arbitrum, Hong Kong, Optimism, Upbit
Original sources
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