Blast officially announced the shutdown. TVL dropped from its peak of $2.26 billion last June to just $32.2 million nowโ
down 98.6%.
This isnโt the beginning of the story; itโs a story that was already written. The official announcement is just another death notice.
If you break down the timeline, itโs clearer.
The peak was in June 2024. The collapse unfolded gradually over the past 15 months, bleeding out little by littleโonce rewards stopped, the money left.
The announcement went out, and within just two hours (UTC 14:00 to 16:00),
the BLAST token fell from 0.000410 to 0.000336โ
the market reacted faster than the news.
Diving in now to bottom-fish is just buying into a message thatโs already run its course.
Thereโs a claim going around that โEthereum L2 isnโt working anymore,โ and that claim doesnโt hold up.
L2Beat data shows Blast itself is a weak projectโ
68.5% of its assets come with additional trust assumptions, with no active state verification,
and 31% of the TVS is directly tied to the BLAST token itself.
This exposes a design flaw of a specific project.
It canโt be used to represent rollups like Base and Arbitrum, which have real on-chain activity and fee income, and are walking down the same path.
Iโm not focused on the official shutdown date of October 26โ
that date is just surface-level.
What Iโm watching is whether the withdrawal channel will get blocked, whether the position unbinding from Lido goes smoothly, and whether thereโs any freeze risk on the bridge.
Until those signals improve, my bias here stays bearishโbottom-fishing doesnโt make sense.
$BLAST
#L2 #crypto #ethereum