Ethereum layer-2 network Blast shuts down as operating costs exceed revenue

Ethereum layer-2 network Blast is shutting down a little over two years after its launch because fading activity has left the blockchain unable to cover operating costs. Blast announced the closure in a post on Friday. Blast said the ongoing costs of maintaining the network exceed the revenue generated by the layer-2 network. Blast said it sees no credible path to making the network economically sustainable. The native token, BLAST, fell 19% after the announcement, extending a steep decline since its debut. BLAST is now down about 98% from launch. Users deposited more than $1.1 billion before the network went live in 2024. Expectations of a token airdrop partly fueled those early deposits.