The layer-2 network said operating costs exceed its revenue and it sees no credible path to sustainability. About $64 million remains in its bridge, users have until Oct. 26 to use the normal exit, and its token fell about 32%.
Crypto · FinancialMarkets.com · October 2, 2026 · Tickers: BLAST, ETH, LDO
Blast, an Ethereum scaling network that drew billions of dollars in deposits before it launched, is closing.
The layer-2 network said on Friday that its operating costs exceed its revenue and that it does not see a credible path to making the chain economically sustainable. It told users to move all assets, including balances in its progressive web app, back to the Ethereum mainnet. Blast did not publish revenue or cost figures.
How users leave
Withdrawals will pause for about a week while Blast exits its positions in Lido, the liquid-staking protocol. When they resume, the withdrawal delay will be cut to 24 hours. Users can withdraw through Blast's interface until Oct. 26. After that, they will have to withdraw directly through the network's bridge contract, a route that requires more technical steps.
The shutdown does not by itself mean users lose funds. Assets bridged to Blast can be withdrawn to Ethereum through either route.
What is left
About $32 million remained in decentralized-finance deposits on Blast, and about $64 million in its bridge, according to DefiLlama, a small fraction of the more than $2 billion the network attracted at its peak. Blast's token fell about 32% to $0.00028, leaving it with a market value of about $14.9 million.
A pattern among layer-2s
Blast joins Zero Network and Silicon Network among Ethereum layer-2 networks winding down this year. Layer-2s process transactions off Ethereum's main chain and settle them back to it, earning fees from users while paying Ethereum for settlement and their own operating costs. When activity falls, the fee income can drop below those costs.
Blast built its early deposit base on yield and rewards points, a model that depends on incentives.
Staking flows
Blast's exit from Lido comes while more ether is waiting to enter staking than to leave it. Early on Friday, the validator entry queue held about 1.6 million ETH, roughly double an exit queue of about 766,000.
Oct. 26
The pace of withdrawals before the interface deadline is the measure to watch. Whether the roughly $64 million in the bridge moves out on schedule, and whether other incentive-driven networks follow Blast, will show how far the consolidation runs.