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Ethereum L2 Silicon to shut down by year-end; ~$9.75M assets stranded

Ethereum Layer 2 network Silicon announced it stopped accepting new bridge deposits on Sept 2 and initiated shutdown, requiring users to withdraw all assets by Dec 31, after which the network and block explorer will go offline and remaining assets will be unrecoverable. Approximately $9.75 million in assets remain on-chain, including USDC ($2.66M), WBTC ($2.54M), ETH ($2.08M), and USDT ($1.85M). Assets bridged from Ethereum mainnet can be withdrawn directly, but tokens issued on Silicon cannot be bridged and rely on on-chain liquidity, which may dwindle.

Original source

AI take

The shutdown timeline creates a hard deadline that converts a technical transition into a real liquidity risk for users holding Silicon-native tokens, since those can't be recovered via standard bridges and depend on thinning on-chain liquidity. The stranded $9.75M across major assets highlights how quickly L2 fragmentation can turn into trapped value when a network winds down. The open question is whether sufficient liquidity remains for native token holders to exit before the explorer goes dark, and whether this event prompts closer scrutiny of L2 longevity and exit mechanisms across the ecosystem.

Generated by AI for reference only.

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