Bitcoin Layer 2 Botanix Shuts Down After 4 Years, 25M Transactions Insufficient to Cover Costs

Botanix Labs announced it will shut down its Bitcoin Layer 2 network after nearly four years, as transaction fee revenue proved insufficient to cover operating costs. The team determined that organic transaction activity was not enough to maintain the infrastructure, with most users treating Bitcoin as a long-term store of value rather than actively engaging in decentralized finance applications.

During its mainnet deployment, Botanix achieved 100% uptime with no security incidents over a year, processing approximately 25 million transactions across more than 200,000 wallets. The network integrated with major providers including Chainlink, Morpho, and OKX Wallet. However, user behavior did not support the high-frequency transaction activity needed for sustainable economics.