Nearly $10 million Must Exit Dying Ethereum L2 Silicon Network by Year‑End

Silicon Network, a non‑custodial Ethereum layer‑2 solution that connected Korean exchange users to DeFi, announced the end of its service. The network stopped accepting new bridge deposits on Sept. 2 and will close its explorer and chain after Dec. 31, leaving any remaining on‑chain assets unrecoverable.

Withdrawal deadline and process

During the withdrawal window (Sept. 2 – Dec. 31), users can move assets originally bridged from Ethereum back to the mainnet. External‑wallet holders must initiate a withdrawal, retain enough ETH for gas fees, and complete the finalization before the cutoff.

Assets at risk

L2Beat data shows Silicon held roughly $9.75 million in assets, primarily:

• $2.66 million USDC
• $2.54 million WBTC
• $2.08 million ETH
• $1.85 million USDT

Tokens minted directly on Silicon cannot be bridged to Ethereum and depend on remaining liquidity within the network, making their exit uncertain.

Implications for the Ethereum scaling ecosystem

The shutdown highlights growing concentration in Ethereum’s L2 market. Coinbase‑backed Base and Arbitrum together secure over $24.7 billion, more than 80 % of the $30.5 billion tracked across Ethereum L2s. While Silicon’s closure was not directly linked to market consolidation, it underscores the challenges smaller L2s face as the ecosystem matures.