Saturday May 10, 2025 ▪
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The DEFI ecosystem on Bitcoin shows contradictory signals. The rootstock platform records a spectacular increase in network safety in the first quarter of 2025, even if the total value of investments and user activity decreases considerably.
Brief
- The hidden participation of rootstocks reached an 81% summit in T1 2025.
- The hash rate exceeds 740 exams per second, exceeding Bitcoin network levels in October 2024.
- TVL drops by 20% to settle at $ 179.9 million.
- Active addresses decrease by 26.5% while daily transactions increase slightly.
Bitcoin Defi shows opposite signals in 2025
Rootstock, the main platform of smart contracts on Bitcoin, has taken an important step in the first quarter with the integration of the foundry of the mining giants and Spiderpool. This strategic alliance propelled mining participation merged at a historic level of 81%, compared to 56.4% in the fourth quarter of 2024, according to the report “State of Rootstock” published by Messari.
This development marks the entry of the network into its “maturity phase” of mining growth. The hash power now reaches more than 740 exams per second, even exceeding the rate recorded by the main Bitcoin network last October.
The spectacular improvement in safety is accompanied by a 60% reduction in transaction costs, which makes the platform more competitive compared to other layer 2 solutions.
“”While BTCFI continues to grow, the rootstock is well positioned for wider adoption“Says thatrew Yang, analyst at Messari, citing technical improvements and incentive programs as key factors.
Cooling of the DEFI activity despite the technical advances
Despite these technical advances, the Rootstock financial ecosystem is going through a difficult period. TVL labeled by Bitcoin dropped by 7.2%, while the TVL worded by the USD dropped by 20% to $ 179.9 million.
This drop aligned with a broader trend, because DEFI based in Ethereum also underwent a 27% drop in the first quarter. Macroeconomic uncertainty and $ 1.4 billion dollars hack had an impact on the sector, according to Dappradar.
User activity also shows signs of slowing down: active addresses have dropped by 26.5% and new addresses of 54.7%. The only positive point: daily transactions increased slightly by 4.3%, reaching an average of 11,524 per day.
The dynamics of the Stablescoin market has also evolved, with the remaining USDT dominating despite a reduced market share of 27.5%, against 41.3% in the previous quarter. In particular, no Stablecoin now exceeds 30% market share on the rootstock.
Despite these challenges, Rootstock continues its technological development with the Lovell 7.0.0 upgrade and the new integrations with Layerzero and Meson Finance. These advances arise as Bitcoin continues to conquer the financial markets, recently exceeding Amazon to become the most popular fifth in the world with a market capitalization exceeding $ 2,030 billion.
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Passionate about Bitcoin, I like to explore the meanders of blockchain and cryptos and share my discoveries with the community. My dream is from Vive Danans a world where private life and financial freedom are guaranteed for everyone, and I closely believe that Bitcoin is the oustil that can make it possible.
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