Paradigm-backed Blast to Shut Down L2 Network, Cites Costs Exceeding Revenue

Blast's shutdown is a reminder that L2 economics are unforgiving: even a Paradigm-backed network with venture funding couldn't sustain costs against revenue. The pressure isn't unique to Blast — rollup operators broadly face fee compression and intensifying competition, and this exit signals that capital alone no longer guarantees survival. What matters most is the user deadline for withdrawals, since stranded funds are the immediate risk. Whether more L2s follow Blast's path, and whether consolidation accelerates across the rollup landscape, is the open question worth watching.