Botanix Announces Gradual Shutdown of L2 Network

Botanix has revealed plans to gradually shut down its Bitcoin Layer 2 network, requesting users to withdraw their assets by July 9, 2026.

We share this difficult decision to wind down the Botanix network with a heavy heart. We owe our supporters transparency in our reasoning.

— Botanix 🕷️ (@botanix) June 9, 2026

The team cited low demand for Bitcoin programmability as the primary reason for the closure. They noted that most decentralized finance (DeFi) users prefer using wrapped Bitcoin on Ethereum, while on-chain transactions are increasingly dominated by major platforms like Hyperliquid and Robinhood.

Furthermore, Botanix found that users primarily regard Bitcoin as a store of value rather than for high-frequency trading, leading to insufficient fee income to sustain operational costs.

Post-deadline, any assets left on the network will be managed by the validator group known as Federation, and unwithdrawn funds will become unrecoverable.

Initially launched on July 1, 2025, Botanix aimed to enhance Bitcoin's DeFi capabilities by significantly reducing block addition times to five seconds. The project raised $8.5 million in May 2024, totaling $11.5 million from investors including Polychain Capital and Placeholder Capital.

Despite the closure, analysts had previously projected that by 2030, Bitcoin's Layer 2 solutions could attract over $47 billion in liquidity.