Bitcoin layer-2 solutions are facing a reality check in the bear market, as industry leaders critique their current strategies. Wrapped bitcoin products like WBTC and Coinbase's cbBTC allow BTC to circulate in DeFi, but many users are reluctant to give up custody for synthetic tokens. Orkun Mahir Kılıç, CEO of Chainway Labs, argues that Bitcoin layer-2s should not position themselves as general-purpose blockchains, as mature ecosystems already exist for trading and lending. Instead, they should focus on products uniquely enabled by Bitcoin's security and settlement features. Diego Gutierrez Zaldivar, CEO of Rootstock Labs, highlights the challenges of building a blockchain ecosystem, noting that it is more complex than solving technical issues. The closure of Botanix serves as a reminder of the difficulties in establishing a sustainable blockchain environment. The emphasis is on leveraging Bitcoin's unique strengths rather than competing directly with established platforms like Ethereum.