Botanix Winds Down Bitcoin Layer-2 Project as BTC DeFi Stays Below $5 Billion
Updated
Updated · CoinDesk · Jun 17
Botanix Winds Down Bitcoin Layer-2 Project as BTC DeFi Stays Below $5 Billion
1 articles · Updated · CoinDesk · Jun 17
Summary
Botanix said it is shutting down after concluding programmable Bitcoin "did not work" in the current market and failed to match where users are today.
Less than $5 billion in Bitcoin onchain DeFi activity versus about $39 billion on Ethereum underscores the adoption gap, even though Bitcoin’s market cap is roughly four to five times larger.
Builders still in the sector said the failure weakens the idea of building an "Ethereum on Bitcoin" ecosystem, arguing Bitcoin layer-2s should target narrower uses tied to Bitcoin security and settlement.
Rootstock and Babylon pointed instead to bitcoin-backed lending, staking and bringing BTC into existing DeFi markets, saying demand is stronger for transparent yield and collateral products than for general-purpose apps.