Blast and Abstract Announce Shutdowns as Compressed Margins Strain Ethereum Layer-2 Rollups

Ethereum Layer-2 rollups face severe consolidation pressures as operators struggle with unsustainable economics. Blast and Pudgy Penguins-affiliated Abstract have announced plans to wind down operations, citing infrastructure and operating costs that exceed generated fee revenues. Blast will halt interface withdrawals after October 26, while Abstract plans to shutter services on December 15 following tens of millions of dollars in losses. The closures highlight how Ethereum's EIP-4844 upgrade compressed profit margins for smaller networks, despite lowering data availability expenses that historically made up over 90% of rollup transaction costs.