Botanix Will Shut Down Bitcoin Layer-2 Network in July, Citing Lack of DeFi Demand
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★ Tier-1 Source
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.
Key facts
- The company behind the network, Botanix Labs, secured $8.5 million in total funding during a seed round in 2024, which saw participation from longtime Bitcoin influencers such as Dan Held and Eric
- On Wednesday, the value of digital assets deposited in smart contracts on Botanix stood at $120,000, down from a peak of $26.3 million in September, according to DeFi Llama
- 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
Summary
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. 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.