Botanix shuts down Bitcoin layer-2 network

Botanix will shut down its Bitcoin layer-2 network due to low DeFi demand and insufficient revenue. Users must withdraw funds before July 9. The project cites user preference for wrapped Bitcoin on Ethereum.

Botanix, a Bitcoin layer-2 network, has announced its shutdown after nearly four years of development. The team cited insufficient demand for native Bitcoin decentralized finance (DeFi) and inadequate fee revenue as the main reasons for ending operations. Despite processing 25 million transactions, attracting 200,000 wallets, and maintaining 100% uptime with no security incidents, Botanix struggled to achieve meaningful product-market fit. Most users continue to view Bitcoin primarily as a reserve asset, with DeFi demand largely met by wrapped Bitcoin on Ethereum-based networks. Although Botanix's infrastructure, including Spiderchain and Dynafed, was technically successful, it failed to generate enough user adoption or revenue. Users are urged to withdraw their assets before July 9, after which remaining funds will be swept by the network's federation. The closure underscores the challenges Bitcoin layer-2 DeFi solutions face against established Ethereum ecosystems.