The chains economics deteriorated quickly as speculative capital moved elsewhere and activity faded. Total value locked peaked over $2 billion in June 2024, according to DeFiLlama, and has since fallen to only $32 million. Meanwhile, Blast generated just $1,793 in revenue from network usage last month, down from a peak of about $3.5 million in June 2024, DeFiLlama data shows.
Blast total value locked and chain revenue (DeFiLlama)
Its demise points to a broader shakeout among blockchain networks.
Running a chain means paying for development, infrastructure and security even after user activity dries up. A recent wave of crypto exploits has drawn additional attention to security spending, while AI tools may also make it easier for attackers to probe code for weaknesses.
Competition is getting tougher, too.
Large consumer platforms with built-in distribution have launched their own Ethereum-based networks. Crypto exchange Coinbase · rolled out Base and has turned its exchange users and developer ecosystem into a source of activity, while Robinhood · launched its own Ethereum layer-2 network earlier this year, with massive early onchain activity.
That leaves smaller chains fighting for developers, users and transaction fees in an increasingly crowded market. Blast's closure shows what may happen when the economics no longer add up.