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Silicon Network’s Ethereum L2 shutdown leaves up to $10 million at risk
The L2 stopped accepting new deposits on Sept. 2 and users have until Dec. 31 to withdraw before the explorer and network shut down.
Silicon Network, an Ethereum layer 2 built to connect users with Ethereum’s onchain ecosystem, is shutting down after nearly $10 million remains on-chain. CryptoSlate reports the network stopped accepting new bridge deposits and began a withdrawal period on Sept. 2 that runs through Dec. 31, after which its explorer and network will shut down.
Silicon warned that assets not withdrawn by the cutoff will become unrecoverable. The network described the service as non-custodial, saying users must handle custody and withdrawals themselves, and that once the service is terminated, remaining assets cannot be recovered.
According to L2Beat data cited by CryptoSlate, Silicon held about $9.75 million in assets, led by $2.66 million of USDC, $2.54 million of WBTC, $2.08 million of ETH, and $1.85 million of USDT. Assets originally bridged from Ethereum can return to Ethereum mainnet during the withdrawal window, but users must initiate withdrawal, keep enough ETH for gas, and complete required finalization before the cutoff.
Tokens issued directly on Silicon face a more difficult exit because they cannot be bridged directly to Ethereum and depend on liquidity remaining inside the network, which could make swaps or withdrawals difficult or impossible as activity winds down. CryptoSlate also notes Silicon’s closure comes as Ethereum’s scaling market is increasingly concentrated among larger networks, including Base and Arbitrum, which together account for about $24.7 billion of the roughly $30.5 billion held across networks tracked by L2Beat.
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