Rootstock‘s DeFi: Mining Boom Amidst Market Cool Down
In the first quarter of 2025, Rootstock, Bitcoin‘s dedicated DeFi platform, witnessed a fascinating divergence. While its overall DeFi ecosystem experienced a decline in total value locked (TVL), the network saw a significant surge in mining participation and security.
Mining Surge: Rootstock Attracts Miners
Messari’s “State of Rootstock” report for Q1 2025 revealed that merged mining participation on Rootstock soared to an all-time high of 81%, up from 56.4% in Q4 2024. This surge was driven by the integration of major mining pools like Foundry and SpiderPool.
The heightened miner interest propelled Rootstock‘s hash power to over 740 exahashes per second, surpassing the total Bitcoin network hashrate recorded in October 2024. This impressive achievement positioned Rootstock in a “mature phase” of merged mining growth.
The increased security wasn’t the only positive development. Rootstock also witnessed a 60% reduction in transaction fees, making it more competitive in the Bitcoin layer-2 ecosystem. This improved user experience is a significant factor in attracting broader adoption.
TVL Drops: Broader Market Cooling
Despite the impressive mining milestones, Rootstock‘s DeFi ecosystem faced a cooling market. Bitcoin-denominated TVL decreased by 7.2%, and US dollar-denominated TVL dropped by 20% quarter-over-quarter to $179.9 million. While the TVL briefly peaked at $244.6 million in January during a Bitcoin price rally, it trended downward from March.
This trend mirrors the broader DeFi market, which also experienced a 27% decline in TVL during Q1. The decline was attributed to macro uncertainty and the $1.4 billion Bybit exploit.
Stablecoin Market Fluctuations: USDt’s Dominance Wanes
Rootstock‘s stablecoin market underwent notable changes. While USDt remained the leading stablecoin by value, holding $3.8 million and a 27.5% market share, its dominance significantly decreased from 41.3% in Q4 2024. By the end of Q1, no single stablecoin held a dominant position in Rootstock‘s stablecoin market.
Rootstock Development Progress: Lovell 7.0.0 and More
On the development front, Rootstock activated its Lovell 7.0.0 upgrade, enhancing Ethereum Virtual Machine (EVM) compatibility and smart contract performance. The platform also expanded its ecosystem through integrations with LayerZero and Meson Finance.
Rootstock continues to invest in developer-focused initiatives, launching a new hackathon and enhancing its governance platform, RootstockCollective. This commitment to development signals a long-term vision for Rootstock within the Bitcoin DeFi space.
A Bright Future for Rootstock: A Bullish Outlook
While the overall DeFi market faces cooling trends, Rootstock‘s strong performance in mining and its commitment to development suggest a bright future. Its competitive edge in the Bitcoin layer-2 ecosystem, coupled with its active development initiatives, positions Rootstock as a significant player in the evolving Bitcoin DeFi landscape. This is a story worth watching as Bitcoin DeFi continues to mature.
