Does Botanix’s failure prove Bitcoiners don’t care about DeFi?

The article argues that Botanix’s shutdown is a negative signal for Bitcoin-native DeFi, suggesting that Bitcoin holders prefer using BTC as a reserve asset or collateral rather than actively using it in DeFi. Botanix reportedly processed 25 million transactions, supported 200,000 wallets, and bridged tens of millions of dollars, but still failed because fee revenue was too low to sustain infrastructure costs. The piece contrasts this with stronger liquidity and user demand on Ethereum-based wrapped BTC venues and other mature ecosystems such as Solana and BNB Smart Chain. It also notes that Bitcoin DeFi remains small overall, with only $4.12 billion TVL versus Bitcoin’s $1.2 trillion market cap, and survey data showing 77% of Bitcoin holders have never used a BTCFi platform. The broader market takeaway is that institutional adoption and passive holding appear to dominate, while standalone Bitcoin DeFi execution layers remain niche and structurally challenged.