Botanix Will Shut Down Bitcoin Layer-2 Network in July, Citing Lack of DeFi Demand
Botanix is shutting down its Bitcoin-based layer-2 network less than a year after launch. Users were told to withdraw funds by July 9, after which funds become unrecoverable. The project said Bitcoin remains mainly a reserve asset, not a strong base for apps, and that users preferred wrapped Bitcoin on Ethereum layer-2s because they are cheaper and easier to use. Botanix was built as an EVM-equivalent network so Ethereum developers could port apps with minimal changes. Despite raising $8.5 million in seed funding and promoting self-custody and decentralization, it failed to achieve product-market fit, attract enough attention, or generate enough revenue. The team also said plans for a native token never made sense without stronger usage. DeFi activity on the network had fallen sharply: total value locked dropped to about $120,000 from a $26.3 million peak, and fees were nearly nonexistent.
