Blast L2 Shutdown: Ethereum Layer-2 Once Valued at $2B Collapses After 98% Asset Plunge

Blast, an Ethereum layer-2 scaling solution that once reached a $2 billion valuation, is officially shutting down after its total value locked (TVL) and assets plummeted by 98%. The dramatic collapse marks one of the most significant downturns for an Ethereum L2 project in recent memory. Blast launched with considerable hype, promising native yield for ETH and stablecoins, but failed to sustain momentum as user funds drained and market confidence evaporated. The shutdown highlights the intense competition and fragility within the Ethereum layer-2 ecosystem, where projects must continuously innovate to retain liquidity and users. ETH holders and DeFi participants are now reassessing risks tied to emerging L2 networks. The incident serves as a cautionary tale for investors chasing high-yield promises in the crypto space.