Botanix bet big on 'Bitcoin DeFi.' Its shutdown suggests users never cared
Botanix, a Bitcoin layer-2 designed to add Ethereum-like smart contracts and DeFi to Bitcoin, is shutting down about a year after its mainnet launch. It raised $14.4 million in 2023–2024, but its TVL was only about $119,500 at closure. The project blamed weak market conditions and low demand for making Bitcoin “programmable” and productive, saying the effort “did not work” in this environment. The shutdown highlights broader doubts about Bitcoin utility-focused layer-2s and protocols such as Rootstock and Citrea during a muted crypto market. Botanix suggested Bitcoin may remain mainly a reserve asset, while simpler alternatives like wrapped BTC on mature general-purpose networks may better meet demand for lending, yield, and leveraged exposure.
