Ethereum Network Blast Is Shutting Down: Who Controls Users’ Last $51 Million?
Blast, a crypto community that held $2.24 billion in June 2024, is shutting down. In the previous day, it earned $110 in chain income.
Blast is a Layer 2 (L2), a less expensive facet community that runs on prime of Ethereum. It paid curiosity on deposits and promised a token reward. The cash got here for the reward. The Blast (BLAST) token fell 19% on the information.
Why Blast Is Shutting Down Now
The staff stated on Friday that the chain prices extra to run than it makes, with no credible repair in sight.
Founder Tieshun Roquerre, recognized on-line as Pacman, additionally constructed Blur, a market for digital collectibles. He posted his personal goodbye.
“I’m upset that we weren’t capable of make the chain sustainable over the long run, however I’m grateful to the customers, builders, and groups who helped give Blast its second, even when 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 almost 99%, DefiLlama knowledge exhibits.
BeInCrypto flagged the pressure early, when Blast posted negative revenue in March. It had raised $20 million from traders.
Who Holds the Keys to Users’ Last $51 Million
About $51 million bridged from Ethereum nonetheless sits in Blast’s contracts, says L2BEAT, a website that charges community security. Most of it, $46.6 million, is staked ETH held with Lido, an curiosity service.
That is why exits freeze first. Blast should pull its cash out of Lido, which takes a couple of week. After that, the withdrawal wait drops from seven days to 24 hours.
Users have till October 26 to make use of the traditional app. After that, they need to cope with Blast’s contracts on Ethereum instantly.
L2BEAT exhibits 5 keyholders management these contracts. Any three can change them immediately or pause withdrawals. Blast’s fraud-proof system, which lets anybody problem a false file, by no means absolutely labored.
“A malicious proposer can finalize an invalid state, which might trigger lack of funds,” learn an excerpt on the page.
L2BEAT flags the design threat. It doesn’t 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.
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