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Botanix, a Bitcoin layer-2 protocol, has failed to attract the user base its backers anticipated, and the outcome points to a persistent behavioral pattern: Bitcoin holders continue to favor Ethereum-based decentralized finance over native Bitcoin L2 alternatives.
The result puts the broader Bitcoin L2 sector on notice that capturing hodler capital requires more than building on Bitcoin's brand.
What Botanix's Outcome Reveals The Botanix failure is less a story about one protocol and more a data point about where Bitcoin holders actually put their assets when they want DeFi exposure.
Despite the theoretical appeal of keeping activity within the Bitcoin ecosystem, users have continued routing to Ethereum DeFi instead.
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