Summary

  • Blast winds down its Ethereum L2 after TVL collapses more than 98 percent to roughly $32 million and daily revenue falls to $110.
  • Users must complete withdrawals by October 26 2026 or face risks with bridge contracts.
  • Aztec Labs relaunches zk.money on September 29 2026 to support private stablecoin payments on Ethereum as a contrast to general scaling economics.

Blast is shutting down its Ethereum Layer 2. Operating costs beat revenue. Activity plunged and left the chain with almost no income. By early October 2026 total value locked had dropped more than 98 percent to roughly $32 million.

The announcement comes right after Aztec Labs restarted zk.money. That relaunch pushes privacy features instead of broad scaling. Both moves show the different pressures on Ethereum L2 projects.

Context

Ethereum layer 2 projects multiplied in recent years. Many chase liquidity through incentives and token launches. Some networks then struggle to cover sequencer and infrastructure costs once incentives fade.

Blast followed this pattern. The chain once held over $1 billion in TVL. It could not sustain operations after activity fell. Revenue hit only $110 in a recent 24-hour period while fees reached $124 according to DefiLlama data.

Details

Network operators say ongoing costs now exceed revenue. Bridge contracts still hold roughly $63.5 million. Users must exit by October 26 2026 or risk complications if assets remain.

"Blast to Shut Down L2 Network After 98% Drop in TVL."

, Forklog (Source)

Aztec Labs took a different route. It relaunched zk.money on September 29 2026. The update targets private stablecoin transfers with zero-knowledge proofs. The move revives a 2021 tool that once handled over $100 million in volume. Aztec's approach skips the race on general throughput.

Blast's shutdown gives one example of the sustainability questions facing Ethereum layer 2 projects. Projects that cannot generate consistent fee revenue face tough choices once liquidity moves elsewhere.

Outlook

Users have until October 26 2026 to withdraw funds. Aztec's zk.money keeps running in parallel. It offers a privacy option on Ethereum while other scaling experiments test their long-term economics.