In brief
Botanix disclosed plans to wind down its Bitcoin-based layer-2 network, asking users to withdraw funds.
The project said it didn't achieve significant product market fit, while generating lackluster fees.
Botanix Labs raised $8.5 million in 2024, a round that saw participation from several Bitcoin influencers.
Botanix asked users to withdraw funds on Wednesday, disclosing plans to wind down its Bitcoin-based layer-2 network less than a year after it debuted.The project, which combined elements of Ethereum’s design with crypto’s oldest network, warned users that their funds would become unrecoverable after July 9. At the same time, Botanix shared a lengthy postmortem on its DeFi push in an X post.Previously billing its network as a way for users to trade, lend, borrow, and stake “all in Bitcoin on Bitcoin,” Botanix acknowledged on Wednesday that the leading digital asset by market cap is still primarily viewed as a reserve asset—not a network for building applications.The project added that investors have essentially voted with their feet, continuing to favor wrapped Bitcoin on general-purpose Ethereum layer-2 networks as a “cheaper and easier” way to leverage their holdings, regardless of any concerns or risks tied to centralization.
