Ethereum layer-2 network Blast is shutting down, according to a report from FXStreet, with the shutdown coming as the project's native BLAST token has lost roughly 99% of its value from its all-time high.

The closure marks an abrupt end for a network that had attracted significant attention in the Ethereum scaling sector. Blast positioned itself as an Ethereum layer-2 rollup, a class of infrastructure designed to process transactions off the main chain while periodically settling state back to Ethereum. Its native token, BLAST, now trades near 1% of its peak valuation, according to the FXStreet report.

The report did not specify a precise wind-down timeline, a legal restructuring mechanism, or the treatment of user funds bridged to the network. Those questions will bear directly on Blast's user base: layer-2 networks custody bridged assets through contracts on Ethereum, and a shutdown process typically requires a defined withdrawal or migration window so that users can move funds back to the base chain.

Blast's rise was tied to the 2023–2024 cycle of layer-2 launches, a period in which several new rollups attracted deposits through points programs and yield-bearing designs before issuing tokens. The subsequent collapse in BLAST, a drawdown of approximately 99% from its high, places the project among the most severe token underperformers to emerge from that cohort.

The operational consequences extend beyond the token itself. A shutdown of the sequencer or of active network maintenance affects application developers who deployed on Blast, liquidity providers in its decentralized exchanges, and projects that built their own tokens and infrastructure on the network. Those teams now face a migration decision: redeploying on another layer-2 or on Ethereum mainnet, with the associated costs of contract redeployment and user communication.

The FXStreet report attributes the shutdown to the project itself but does not detail a hack, an enforcement action, or a regulatory trigger. Absent those factors, the closure reads as a commercial wind-down following a sustained loss of token value and, presumably, of the treasury and incentive capacity that funded operations.

For the broader layer-2 market, Blast's exit narrows the field of active Ethereum scaling networks and adds a cautionary data point for investors evaluating newly launched infrastructure tokens. Subsequent on-chain verification — monitoring Blast's bridge contracts, sequencer status and any announced withdrawal deadlines — will determine how orderly the wind-down proves to be for remaining users.