Blast to wind down Ethereum layer-2 after TVL falls 98%
Blast will wind down its Ethereum layer-2 after costs outpaced revenue; users can withdraw through its interface until Oct. 26 before using Ethereum bridge contracts.
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Blast said on Oct. 2 it will wind down its Ethereum layer-2 network because operating costs exceed revenue and the project sees no path to sustainability. The network’s total value locked has fallen from more than $2 billion to about $32 million, The Block reported.
Why is Blast shutting down?
Blast said the economics of operating the chain no longer make sense. The project’s announcement, reported by CoinDesk, cited maintenance costs above the revenue generated by the network.
Blast’s value locked peaked above $2 billion in June 2024, according to DeFiLlama data cited by CoinDesk, and has since dropped to about $32 million. The network generated $1,793 in revenue from usage in September, down from about $3.5 million in June 2024, CoinDesk reported.
How can users withdraw their assets?
Blast is asking users to move assets to Ethereum mainnet. The team said it will first withdraw Blast’s Lido assets, a process expected to take about a week, during which withdrawals will be unavailable.
After that process, withdrawals will resume with a 24-hour delay. Users can withdraw through Blast’s usual interface until Oct. 26, 2026; afterward, they will need to interact directly with Blast’s bridge contracts on Ethereum. The project said it will publish instructions for using the contracts before that date.
Sources and documents
- The Block reported — theblock.co
- CoinDesk — coindesk.com