Ethereum L2 Network Silicon Shuts Down Amid Value Capture Debate
The Ethereum L2 network Silicon has begun its shutdown process after stopping new cross-chain deposits on September 2. The network and its block explorer will cease operations permanently by December 31, with users having until then to withdraw their assets.
Around $9.75 million remains on the chain, with USDC, WBTC, ETH, and USDT being the main assets still locked on Silicon. Users can return eligible assets to the mainnet during the withdrawal window, provided they keep enough ETH for gas.
ARK Invest researcher Lorenzo Valente compared Ethereum's L2 model to a franchise system that expanded successfully but undercharges for settlement, unlike Solana and Hyperliquid. He argues this could be a missed opportunity for value capture.
Traders are also on edge as Machi made $11 million in one week before losing roughly $7 million trading ETH and BTC the following week. This volatility highlights the risks even experienced traders face.