Bitcoin Layer-2 Network Botanix Ceases Operations

The Bitcoin-based second layer network Botanix is shutting down operations. The project's administration is warning users to withdraw their digital assets from the network by July 9, as it will be impossible to recover funds after that date.

Botanix was created as a second layer network for Bitcoin. Simply put, it was a system built on top of Bitcoin where transactions were supposed to be faster and cheaper. The project offered Bitcoin holders trading, borrowing, and other financial services. However, the project failed to attract a sufficient user base. According to Botanix, Bitcoin owners continue to hold it primarily as a long-term asset and do not use it for everyday financial operations.

The problem also manifested in financial metrics. In September, the total value of assets held in the network exceeded $26 million, but according to the latest data, this figure has decreased to approximately $120,000. Daily commission revenue amounts to only $10.

The project attracted $8.5 million in investment in 2024, but competition and low demand proved decisive. According to Botanix's statement, the costs of maintaining the network were much higher than the revenue generated, which is why continuing operations was no longer justified.

Source: Yahoo Finance