Blast Layer 2 Shuts Down: Withdraw Funds by 26 October
Ethereum layer 2 Blast is closing because its costs exceed revenue. Users must withdraw by 26 October, and the BLAST token has roughly halved.
Blast, the Ethereum layer 2 network started by the founder of NFT marketplace Blur, said on Friday, 2 October 2026 that it is shutting down because the cost of running the chain now exceeds the revenue it brings in. Users have until 26 October 2026 to move their funds back to Ethereum through the normal Blast interface. The BLAST token began falling in the 14:00 UTC hour (7:30 pm IST) on 2 October and was down about 47% over 24 hours by 14:30 UTC (8:00 pm IST) on 3 October. Ether trades at ₹259,145 on our Ethereum price in INR page.
Key takeaways
- Blast says operating costs exceed what the network earns and it sees no credible path to becoming sustainable, so it is winding the chain down.
- Everyone with assets on Blast, including balances in the Blast mobile web app, is asked to withdraw to Ethereum mainnet by 26 October.
- Withdrawals pause for about a week while Blast pulls its staked ether out of Lido. After that, the withdrawal wait drops to 24 hours.
- After 26 October, funds can still be recovered, but only by using the Blast bridge contract on Ethereum directly. Blast says it will publish instructions before the deadline.
- BLAST fell from about $0.00041 before the news to about $0.00022 at 14:30 UTC on 3 October, roughly ₹0.021 per token.
What Blast announced
The team posted the notice on its official account on 2 October. Its message was plain: running the network costs more than the fees it collects, and there is no realistic way to change that, so Blast will close the chain and help users leave in an orderly way.
The first step is to unwind the ether that Blast staked through Lido, the liquid staking service. Blast expects this to take about a week, and user withdrawals are paused meanwhile. After that, the withdrawal waiting period drops to 24 hours.
| Step | When | What it means for you |
|---|---|---|
| Lido unwinding | About one week from 2 October | Withdrawals are paused while Blast takes its staked ether out of Lido |
| Faster exits | After the Lido step ends | The withdrawal waiting period is cut to 24 hours |
| Interface deadline | 26 October 2026 | Last day to withdraw with the standard Blast interface |
| After the deadline | From 27 October | Funds can only be withdrawn by calling the bridge contract on Ethereum directly |
How Blast got here
Blast opened for deposits in November 2023, before its network even existed, with a pitch of built-in yield: deposited ether earned staking returns and stablecoins earned a yield linked to US Treasury bills. It raised $20 million from Paradigm and Standard Crypto. Deposits passed $2 billion by the time the network launched at the end of February 2024, and the BLAST token was airdropped in June 2024.
Activity faded once the airdrop was over. Value locked on the chain has dropped by about 98% from its peak to a few tens of millions of dollars. With so little use, fee income no longer covered the cost of keeping the chain running, which is the reason Blast gave for closing.
| Measure | Figure |
|---|---|
| Peak deposits (early 2024) | More than $2 billion, about ₹19,000 crore at today's rate |
| Fall in value locked since the peak | About 98% |
| BLAST price before the news, 2 October | About $0.00041 |
| BLAST price at 14:30 UTC, 3 October | About $0.00022 (about ₹0.021) |
| BLAST change over 24 hours | About −47% |
| Ether at 14:28 UTC, 3 October | $2,681.58, about ₹2.58 lakh at ₹96.37 per dollar |
What it means for Indian investors
If you bridged ether or stablecoins to Blast during the 2024 airdrop rush, check your wallet now. Connect the wallet you used then, pull any funds out of apps on Blast first, and then bridge them back to Ethereum, paying the usual network fee. Our guide on finding your crypto wallet address can help if you are unsure which address you used.
Shutdowns attract scammers. Use only links from Blast's verified channels, ignore direct messages offering help, and never type your recovery phrase into a website. Our guide to storing a seed phrase safely explains why.
Moving your own ether from Blast back to Ethereum is generally not a sale. Selling BLAST or other tokens is a taxable transfer: gains are taxed at a flat 30% plus 4% cess, 1% TDS applies, and a loss on BLAST cannot be set off against gains on other coins. See our explainer on crypto loss set-off rules in India.
Blast is not the only network to close this year. ZetaChain holders recently voted to shut their own chain, which we covered in ZetaChain holders vote to shut its L1. Our guide on what happens to your crypto when a platform shuts down sets out the general steps.
What to watch next
- Lido unwinding: expected to take about a week, so the 24-hour withdrawal window could open around 9 October.
- Bridge instructions: Blast has promised step-by-step guidance for withdrawing directly from the bridge contract before 26 October.
- Apps on Blast: lending and trading apps on the chain may set earlier cut-offs of their own, so check each one you used.
FAQ
Is Blast shutting down?
Yes. On 2 October 2026 Blast said it will wind down its Ethereum layer 2 network because running costs exceed revenue. Users should withdraw their funds to Ethereum mainnet by 26 October 2026.
What happens if I miss the 26 October deadline?
Your funds are not lost, but you will need to withdraw by interacting directly with the Blast bridge contract on Ethereum. Blast says it will publish instructions for this before the deadline.
Why are Blast withdrawals paused?
Blast is taking the ether it staked through Lido back out, which it expects to take about a week. Withdrawals pause during that step and then resume with a shorter 24-hour waiting period.
This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.
