🔶 Botanix Shuts Down Bitcoin Layer 2 Network, Citing Weak DeFi Demand on Bitcoin


Botanix Labs has announced the shutdown of its Bitcoin Layer 2 network after nearly four years of development, urging users to withdraw their assets before July 9.
Despite achieving strong technical milestones—including processing over 25 million transactions without a major security incident—the project acknowledged that demand for native Bitcoin DeFi remains too limited to sustain operations.
According to the team, most Bitcoin holders continue to use BTC primarily as a store of value rather than for frequent on-chain financial activity, resulting in insufficient fee revenue.
The closure highlights a broader challenge facing the Bitcoin Layer 2 ecosystem: while interest in Bitcoin as an asset remains strong, most users seeking DeFi exposure prefer Wrapped Bitcoin (WBTC) on Ethereum or centralized platforms rather than independent Bitcoin-native Layer 2 networks.
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