The Polychain-backed network cites insufficient fee revenue due to shifting DeFi demand toward Ethereum-based solutions.
Botanix, a Bitcoin Layer 2 network backed by Polychain, will shut down operations gradually. The team attributed the decision to low fee revenue, driven by market preference for Bitcoin as a reserve asset and DeFi demand concentrating on Ethereum Layer 2 networks.
The network struggled to cover infrastructure costs amid competition from more accessible general-purpose Ethereum solutions. Users have been advised to withdraw assets by July 9, 2026, as the platform winds down.
No immediate market reaction was reported following the announcement.