Botanix Bitcoin L2 Shuts Down, Citing Lack of User Demand
Botanix, a Bitcoin layer-2 network aiming to bring Ethereum-like functionality to Bitcoin, announced it is winding down one year after its mainnet launch. The project raised $14.4 million but had only $119,500 in total value locked at closure. In a post on X, Botanix stated, "It did not work. At least not in this market and not in this timeline." The shutdown highlights challenges in the Bitcoin DeFi sector, where user interest has remained low despite efforts to make Bitcoin programmable. CEO of Echo Base, Roshan Dharia, noted that the crypto industry is "over-built" with many networks competing for limited users and capital, expecting further consolidation. Botanix's post-mortem questions the viability of Bitcoin L2s in a bear market, suggesting that wrapped Bitcoin tokens like wBTC on mature platforms may suffice for Bitcoin-denominated DeFi.
Key facts
- Botanix raised $14.4 million but had only $119,500 TVL at closure.
- The Bitcoin L2 aimed to bring Ethereum-like functionality to Bitcoin.
- CEO Roshan Dharia expects further consolidation in the crypto industry.
- Botanix suggests wBTC on mature L2s is sufficient for Bitcoin DeFi.