Botanix Labs Shuts Down Bitcoin Layer 2 Network

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 3 days ago

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Operational Shutdown: Botanix Labs announced the closure of its Bitcoin Layer 2 network after nearly four years of development, achieving 100% uptime and processing 25 million transactions, yet failing to generate sufficient user demand to cover operational costs.
User Behavior Insights: Most users treated Bitcoin as a long-term store of value rather than actively engaging in decentralized finance (DeFi) applications, resulting in insufficient transaction activity to generate sustainable fee revenue, highlighting the current state of the Bitcoin ecosystem.
Technical Achievements: Despite the network's closure, Botanix reported several technical milestones during its mainnet deployment, including 100% uptime of the Spiderchain infrastructure and the development of the Dynafed dynamic federation system, enhancing the network's security and flexibility.
Market Trend Observations: Botanix noted that demand for decentralized finance is primarily concentrated around wrapped Bitcoin products on Ethereum and other smart contract networks, with user activity increasingly shifting towards centralized platforms, raising further questions about the economic viability of Bitcoin Layer 2 networks.

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Technical Analysis for ETH

Technical Sentiment Analysis for Ethereum (ETH). As of , Ethereum (ETH) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 5 technical signals, shows that 1 indicators are flashing buy, while 4 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for ETH stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, ETH is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Ethereum (ETH) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	1187.621	1346.651	1502.441	1661.471	1817.261	1976.291	2132.081
Fibonacci	1346.651	1466.912	1541.209	1661.471	1781.732	1856.029	1976.291

About ETH

Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014. The project team managed to raise $18.3 million in Bitcoin, and Ethereum’s price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold. Taking Ethereum’s price now, this puts the return on investment (ROI) at an annualized rate of over 270%, essentially almost quadrupling your investment every year since the summer of 2014.The Ethereum Foundation officially launched the blockchain on July 30, 2015, under the prototype codenamed “Frontier.” Since then, there has been several network updates — “Constantinople” on Feb. 28, 2019, “Istanbul” on Dec. 8, 2019, “Muir Glacier” on Jan. 2, 2020, “Berlin” on April 14, 2021, and most recently on Aug. 5, 2021, the “London” hard fork.Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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