A layer 2 network of Ethereum called Blast, which used to be a billion dollar value2.3 network is shutting down.

Paradigm-funded network Ethereum announced its closure, citing that operating costs were higher than revenues and there was no viable path to economic sustainability. The team disclosed on Friday through X: "We have therefore taken the difficult decision to terminate Blast".

Withdrawal terms and procedures that users need to know

Users have until October 26 to withdraw assets through Blast's standard interface, after which money can still be withdrawn but only by directly interacting with the Ethereum bridge contract.

Blast also announced that it would reduce the withdrawal delay to 24 hours, but the withdrawals will be paused for about a week before pulling network assets out of Lido's liquid staking protocol.

The user must transfer the assets back to Ethereum mainnet including any remaining balances held in Blast's PWA (progressive web)

From 2.3 billions of dollars to shutdown

Blast was launched in November2023 by the same behind-the-scenes teamNFT as Blur, featuring top automated returns,ETH and topped out at stablecoin Paradigm leading a $20 million seed funding round, though the company criticized the media coverage of the launch at the time.

Users deposited more than 1.1 billion dollars before the network went live, and it was valued at over 2.3 billion dollars locked into Blast's bridge when mainnet launched in February.2024

The line was subsequently plagued by obstacles, with Blast temporarily discontinuing production of the block after upgrading Ethereum to Dencun in March,2024 and airdrop in June.2024 Ultimately, BLAST provided $354 million worth of tokens to users but disappointed many. During that time, the total value of the blocks ( TVL ) has decreased approximately30% from a peak of $1 billion.2.3

The shutdown of Ethereum and the market as a whole.

Blast was not the only Layer-2 network to shut down. In May, wallet maker Zerion announced that it would close its zero-network gasless Ethereum after about 18 months of operation, with bridge users leaving by July 31.

Silicon Network, which is Ethereum Layer-2 linked to the South Korean native exchange Korbit , stopped accepting deposits on September 2, allowing users to withdraw funds by December 31, and has an estimated 9.75 million dollars remaining in the chain according to data from L2Beat.

The industry as a whole is also shrinking. CoinEx , which was founded in Hong Kong, announced last month that it would close on December 22, following the closures of BitMEX and BitMart during this year's stock market shutdown.

What's next?

Blast users should plan to divest their assets before October 26 in order to avoid the hassle of negotiating a direct bridge contract. Meanwhile, Blast's closure ahead of Zero Network and Silicon Network reflects increased economic pressure on Ethereum networks which bear high operating costs while revenues are insufficient.