Botanix to shut down after 4 years, cites weak demand for Bitcoin DeFi

Written by Christina Combenstaff writerReviewed by Yohan Yunstaff writerWritten by Christina Combenstaff writerReviewed by Yohan Yunstaff writerBotanix to shut down after 4 years, cites weak demand for Bitcoin DeFiLatest NewsPublishedJun 10, 2026The Spiderchain developer told users to withdraw assets by July 9 after concluding demand for Bitcoin-native DeFi was not sufficient to support the network.Botanix, a Bitcoin scaling network that set out to bring “real utility” to BTC without token incentives, is winding down after four years in operation.In a Tuesday post on X, Botanix told users to withdraw all Bitcoin and other assets by July 9, after which remaining assets will be swept and “be unrecoverable.”The decision comes despite integrations with major crypto infrastructure providers, including Chainlink, Fireblocks and Galaxy, and the launch of a consumer-facing Bitcoin neobank app.Botanix’s Spiderchain architecture combines an Ethereum Virtual Machine-compatible chain with proof-of-stake-style consensus.That structure allowed it to offer Ethereum-like programmability for Bitcoin while relying on a set of validators and a dynamic federation, rather than purely on Bitcoin’s own consensus for security and settlement.In its shutdown notice, the team said the technology and products worked but failed to achieve sustainable product-market fit or economics. Botanix shut-down notice. Source: BotanixBotanix said most users still treat Bitcoin primarily as a reserve asset and yield vehicle rather than something they want to use frequently in onchain applications, and that existing demand for Bitcoin-backed decentralized finance (DeFi) is largely being met by wrapped BTC on Ethereum. Related: Bitcoin payments held back by tax policy, not scaling tech: Crypto execThe team also cited a broader concentration of attention and trading volume on large exchanges, trading platforms and traditional financial intermediaries, which left infrastructure-heavy networks like Botanix s…

Botanix to shut down after 4 years, cites weak demand for Bitcoin DeFi

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