Bitcoin layer-2s face a bear-market reality check
Botanix’s shutdown has raised an uncomfortable question for Bitcoin builders: Does the market actually want programmable BTC, or just a better way to borrow, lend and earn yield on it?
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Summary
- Botanix is winding down operations after concluding that programmable Bitcoin “did not work” in the current market.
- Bitcoin builders say general-purpose layer-2 ecosystems are struggling, but bitcoin-backed lending, staking and yield still have demand.
- Numerous projects emerged while bitcoin was in a buoyant mood from 2024-2025, but muted sentiment may mean users are mainly concerned about BTC’s role as a store of value.
