Botanix shut-down notice. Source: Botanix
Botanix 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.
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The 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 struggling to generate enough fee revenue to cover their costs.
Botanix has warned that anyone who does not remove their Bitcoin and other assets by July 9 will lose access, highlighting the practical risks for retail users when experimental DeFi platforms are wound down.
The shutdown comes as other projects seek to extend Bitcoin’s programmability, including Stacks and Rootstock, which operate independent blockchains linked to Bitcoin, and newer efforts such as Citrea that use different mixes of Bitcoin anchoring, proof-of-stake-style designs and token incentives
Citrea co-founder and chief executive Orkun Mahir Kılıç told Cointelegraph Botanix’s experience is less an indictment of Bitcoin DeFi than of “a cloning-first approach” that largely replicated existing EVM protocols without offering long-term BTC holders a distinct value proposition.
He argued that Citrea is instead focused on applications that “fundamentally require Bitcoin’s specific architecture and trust-minimized settlement,” rather than competing as one more general-purpose chain, pointing to use cases like private payments and Bitcoin-native capital markets rather than generic lending and trading forks.
Cointelegraph reached out to Botanix for comment but did not receive a response by publication.
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