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Botanix shuts down after admitting Bitcoin DeFi model failed
The team behind Botanix has announced the closure of the project and urged users to withdraw all assets. Developers said the technology functioned as intended, but the market ultimately failed to demonstrate sufficient demand for Bitcoin DeFi solutions.
Botanix disclosed its decision in a post on X. The team warned that any assets remaining on the network after July 9 will be forcibly withdrawn, after which access to them will no longer be possible.
The project had been in development for about four years. It was positioned as a way to expand Bitcoin's capabilities without relying on a native token or aggressive user incentive programs.
Botanix was built on Spiderchain, an EVM-compatible network featuring elements of Proof-of-Stake consensus. The approach enabled Bitcoin-based decentralized applications while leveraging familiar Ethereum ecosystem tools.
During its lifetime, the project integrated with companies including Chainlink, Fireblocks, and Galaxy, and also launched a neobank application for retail users.
Lack of demand
The developers stressed that the problem was not the technology itself but the project's economics. According to the team, Botanix failed to achieve sustainable product-market fit.The team concluded that most Bitcoin holders still view the asset primarily as a store of value or a yield-generating instrument. The use of BTC in decentralized applications remains limited.
Botanix also noted that existing demand for Bitcoin-based DeFi products is largely being met through wrapped versions of BTC on Ethereum. This reduces the need for separate infrastructure solutions.
Another factor was the concentration of liquidity and trading activity on major exchanges and traditional financial platforms. According to the developers, this made it difficult to generate sufficient fee revenue to sustain network operations.
What comes next for Bitcoin DeFi?
Despite the project's closure, development of the Bitcoin DeFi ecosystem continues. Projects such as Stacks and Rootstock are pursuing similar goals by expanding Bitcoin's capabilities for smart contracts and decentralized applications.New entrants are also emerging. Among them is Citrea, which uses its Bitcoin scaling approach and focuses on applications closely aligned with Bitcoin's architecture.
Citrea co-founder and CEO Orkun Mahir Kilic said the Botanix story reflects the challenges of replicating existing EVM protocols rather than a lack of demand for Bitcoin DeFi as a whole. In his view, future growth in the sector will come from products that leverage Bitcoin's unique capabilities.
Earlier, Foundation, one of the best-known NFT marketplaces built on Ethereum, also announced that it would shut down. The platform gained widespread popularity during the 2021 NFT boom.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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