Spiderchain technology can't withstand users who only want to hoard tokens and not engage in DeFi; the server shutdown announcement is written quite diplomatically.

CoinWorld news reports that Botanix Labs has announced the shutdown of its Bitcoin Layer 2 network due to insufficient user demand to support the network’s economic operations. During its one-year mainnet operation, the network processed 25 million transactions and 200,000 wallets. Botanix said that although its Spiderchain infrastructure maintained 100% uptime and there were no security incidents, users mainly view Bitcoin as a long-term asset, which limited the demand for decentralized finance applications. Users were asked to withdraw their assets before July 9; after that, the remaining funds will be liquidated by the network’s consortium.