Silicon Network to Shut Down, $10 Million in Assets at Risk
- Silicon Network, an Ethereum layer 2, ceased operations on September 2 and will allow withdrawals until December 31.
- The network holds approximately $9.75 million in assets, including $2.66 million in USDC and $2.08 million in ETH.
- Assets bridged from Ethereum can be returned to the mainnet during the withdrawal window, but tokens issued directly on Silicon face more challenges.
- Users must manage their own asset recovery as Silicon operates as a non-custodial service with no obligation for unwithdrawn assets.
- Korbit’s Web3 Wallet, which utilized Silicon for DeFi access, is also being discontinued after less than two years of operation.
The shutdown of Silicon Network highlights the increasing concentration within the Ethereum scaling market, where larger networks dominate user activity and liquidity options are dwindling for smaller platforms.
As users face a deadline to withdraw nearly $10 million in assets before year-end, failure to act could result in unrecoverable funds once the network terminates completely.
