Blast, a crypto network that held $2.24 billion in June 2024, is shutting down. In the past day, it earned $110 in chain revenue.
Blast is a Layer 2 (L2), a cheaper side network that runs on top of Ethereum. It paid interest on deposits and promised a token reward. The money came for the reward. The Blast (BLAST) token fell 19% on the news.
Why Blast Is Shutting Down Now
The team said on Friday that the chain costs more to run than it makes, with no credible fix in sight.
Founder Tieshun Roquerre, known online as Pacman, also built Blur, a marketplace for digital collectibles. He posted his own goodbye.
“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,” Pacman said.
Value locked on Blast has since fallen to $32.3 million from its 2024 peak, a drop of nearly 99%, DefiLlama data shows.
BeInCrypto flagged the strain early, when Blast posted negative revenue in March. It had raised $20 million from investors.
Who Holds the Keys to Users’ Last $51 Million
About $51 million bridged from Ethereum still sits in Blast’s contracts, says L2BEAT, a site that rates network safety. Most of it, $46.6 million, is staked ETH held with Lido, an interest service.
That is why exits freeze first. Blast must pull its money out of Lido, which takes about a week. After that, the withdrawal wait drops from seven days to 24 hours.
Users have until October 26 to use the normal app. After that, they must deal with Blast’s contracts on Ethereum directly.
L2BEAT shows five keyholders control those contracts. Any three can change them instantly or pause withdrawals. Blast’s fraud-proof system, which lets anyone challenge a false record, never fully worked.
“A malicious proposer can finalize an invalid state, which can cause loss of funds,” read an excerpt on the page.
L2BEAT flags the design risk. It does not allege misuse.
Blast now joins a string of 2026 closures, from Lisk’s blockchain shutdown to Bitcoin Layer 2 Botanix. Its deposits arrived in weeks. Two years later, the chain earns $110 a day.
Source: BeInCrypto
