Rootstock, a Bitcoin layer-2 network to allow for Ethereum-like functionality, had a rough first quarter of 2025. Today, the platform is enjoying an incredible jump in merged mining on-platform with an all-time high of 81% merged mined. Yet its Bitcoin-denominated Total Value Locked (TVL) dropped by 7.2%. Its US dollar-denominated TVL also dropped by 20% to $179.9 million. Even in the face of steep declines, Rootstock not only grew its ecosystem but released new developer-focused initiatives.
Mining Activity and Network Security
Foundry and SpiderPool, two of the largest mining pools, brought a unique and heavy participation in merged mining on Rootstock. Their rapidly increasing integration was instrumental in this increase. Due to the recent boom in miner interest, merged mining growth on Rootstock has now entered into this “mature phase” of growth. This release improves the network’s resilience and improves its competitive position in the fast-paced Bitcoin layer-2 ecosystem. ASIC miners’ performance jumped enormously by the end of Q1 2025. Rootstock’s hash power surpassed considerably over 740 exahashes per second.
This increase in mining participation is a healthy sign of the network’s overall health and security. With more miners contributing to the network, Rootstock is better protected against potential attacks and can offer more robust services to its users. This added security is extremely important to inviting new users and developers to the platform.
The network’s increased security makes it far more competitive in the rapidly changing Bitcoin layer-2 ecosystem. As new projects come up to scale and build Bitcoin’s capabilities, security infrastructure becomes an advantage and Rootstock’s solid security network may prove to be a strong differentiator.
Transaction Metrics and Ecosystem Expansion
Guardians drove up mining participation, but Rootstock crashed hard. Its active addresses decreased by 26.5%, while new addresses tanked by 54.7% quarter-over-quarter. Daily transactions were up only 4.3%, with an average of 11,524 per day. Even more significantly, transaction fees on Rootstock were cut by 60% in Q1 2025. As seen in the chart below, Rootstock’s market share supremacy plunged 29% from 41.3% in Q4 2024.
Rootstock continued to broaden its ecosystem with integrations from LayerZero and Meson Finance. These integrations are designed to increase interoperability within the market and give users greater flexibility when transferring assets between different blockchain networks.
Rootstock was busy on the developer-focused side, including the introduction of a new hackathon and updates to its governance platform, RootstockCollective. Collectively, these initiatives are aimed at bringing more developers onto the platform and spurring creativity among the greater Rootstock ecosystem.
Stablecoin Market and Future Outlook
As of the end of Q1 2025, no one stablecoin held more than 30% of Rootstock’s stablecoin market. This diversification is a positive sign of a healthy, competitive, and cooperative stablecoin environment of the Rootstock ecosystem.
"As BTCFi continues to grow, Rootstock is well-positioned for broader adoption through core upgrades like a 60% reduction in transaction fees, alongside sustained investment in builder education and incentive programs." - Andrew Yang
