The Botanix team has announced a phased shutdown of its L2 network on Bitcoin, urging users to withdraw assets by July 9, 2026.
It is with a heavy heart that we announce we are winding down the Botanix network.
This decision is the hardest one we have made in four years, and we want to share the reasoning openly because the people who backed us, built with us, and used what we shipped deserve more than a…
— Botanix 🕷️ (@botanix) June 9, 2026
The team explained the decision was due to weak demand for Bitcoin programmability. Developers assessed the market as immature: most DeFi sector users prefer the wrapped version of the first cryptocurrency on the Ethereum network, while on-chain activity is increasingly concentrated on major platforms like Hyperliquid and Robinhood.
According to Botanix, users primarily view Bitcoin as a store of value rather than an asset for high-frequency trading. As a result, the network’s commission revenues were insufficient to cover infrastructure costs.
After July 9, assets remaining on the network will be controlled by the validator group Federation. Other funds not withdrawn by the deadline will be irretrievable.
Botanix positioned itself as an EVM-compatible L2 solution for Bitcoin. The project launched its mainnet on July 1, 2025, promising to reduce block addition times from 10 minutes to five seconds and bring DeFi tools to the first cryptocurrency’s ecosystem.
In May 2024, Botanix Labs raised $8.5 million, bringing total funding to $11.5 million. The round included Polychain Capital, Placeholder Capital, Valor Equity Partners, and ABCDE.
Earlier in the same year, analysts at Galaxy Digital suggested that by 2030, more than $47 billion in liquidity could transition to Bitcoin L2 solutions.