Bitcoin (BTC) DeFi Ecosystem Shows Conflicting Signals as Rootstock Platform Records Spectacular Increase in Network Security

The Rootstock platform records a spectacular increase in network security in the first quarter of 2025, even as the total value of investments and user activity decline significantly.

The decentralized finance (DeFi) ecosystem on Bitcoin’s Rootstock chain shows contrasting signals in the first quarter of 2025, according to the latest report by Messari.

While the platform achieved a spectacular increase in network security and technical capabilities, leading to the introduction of its “maturity phase” of mining growth, there was a significant decline in the total value of investments and user activity.

On the other hand, hash power now exceeds the rate recorded by the main Bitcoin network last October, and transaction fees have decreased by 60%, making Rootstock more competitive against other layer 2 solutions.

“As BTCFi continues to grow, Rootstock is well positioned for broader adoption,” asserts Andrew Yang, an analyst at Messari, highlighting technical improvements and incentive programs.

However, despite these technical advances, Rootstock’s financial ecosystem is going through a challenging period. Bitcoin-denominated TVL dropped by 7.2%, while the USD-denominated TVL plummeted 20% to reach 179.9 million dollars.

This decline aligns with a broader trend, as Ethereum-based DeFi also suffered a 27% drop in the first quarter. Macroeconomic uncertainty and the 1.4 billion dollar Bybit hack heavily impacted the sector, according to DappRadar.

User activity also shows signs of slowing: active addresses decreased by 26.5% and new addresses by 54.7%. The only positive point: daily transactions slightly increased by 4.3%, reaching an average of 11,524 per day.

Stablecoin market dynamics have also evolved, with USDT remaining dominant despite a reduced market share of 27.5%, compared to 41.3% the previous quarter. Notably, no stablecoin now exceeds 30% market share on Rootstock.

Despite these challenges, Rootstock is continuing its technological development with the Lovell 7.0.0 upgrade and new integrations with LayerZero and Meson Finance.

These advancements come as bitcoin continues its conquest of financial markets, recently surpassing Amazon to become the fifth most valued asset in the world with a market capitalization exceeding 2,030 billion dollars.

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Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.