‘Costs exceed revenue’- Ethereum L2 network Blast to shut in October

Ethereum Layer 2 Blast will shut down operations by the end of October, citing challenging operational costs. In an X post, the team said they didn’t see a “credible path” to make the chain economically sustainable. 

The economics of operating the chain no longer make sense: the ongoing costs of maintaining Blast exceed the revenue generated by the L2.

Users are expected to withdraw their assets from Blast to the Ethereum mainnet. Additionally, for the asset still locked up in Lido, the team said they will need one week to withdraw and make the funds available. 

Reacting to the same, Blast founder Tieshun Roquerre, who goes by “Pacman” on X, said he was “disappointed” with the shutdown. 

I’m disappointed that we weren’t able to make the chain sustainable over the long term. But I’m grateful to the users, developers, and teams who helped give Blast its moment, even if its run was shorter than we had hoped.

Community slams Blast founder for ‘extraction’

A quick spot check showed the chain had flat cumulative revenues from early 2025. Simply put, data showed no meaningful revenue was generated in nearly two years. 

Besides, the total value locked (TVL) across the chain has declined by over 90% from $2.4 billion to $32 million since mid-2024. 

It’s worth noting that several crypto platforms have also called it quits in 2026. BitMart, BitMEX, CoinEX, and others shut down, citing competition, overwhelming compliance costs, and falling revenues.  

The final deadline for withdrawals will be on the 26th of October. Afterward, any stranded Blast assets will only become withdrawable via the Ethereum mainnet. Unfortunately, Blast’s shutdown has triggered community backlash against the project and the founder. 

For the unfamiliar, pulling funds directly from the Ethereum mainnet without the L2 app is fairly complicated and technical for average retail users. 

Besides, some notable venture capital firms and analysts said the project was “slow rug” and “extractive.” One user said, 

There was never a plan to keep Blast running after TGE. Once the team had fully jeeted their $BLUR bags during the staking program, they slow rugged.

The token’s value has dropped by 98% from a $0.80 peak in late 2024 to $0.02 in 2026. For his part, Mike Dudas, founder of VC firm 6th Man Ventures, slammed the founder,

Pacman, one of the greatest extractors of all time between Blast and Blur. Cut and ran, didn’t have the balls to show his face, absolute disgrace, and those who backed him never called him to account either.

Another critic claimed that the shutdown was “good riddance” and nothing will be lost. 

It remains to be seen whether retail users will be allowed to withdraw everything without going through the Ethereum mainnet. 

Final Summary

• Blast will shut down by October 26, citing unsustainable revenue. 
• The community alleged the project and the founder were “extractive.”