Rootstock Achieves All-Time High in Merged Mining Amidst Declining DeFi TVL in Q1 2025

By: en coinotag|2025/05/08 21:15:01
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Rootstock is making waves in the crypto ecosystem, showcasing remarkable increases in merged mining participation as user activity cools across Bitcoin’s DeFi landscape. Despite a dip in total value locked (TVL), Rootstock’s advancements in network security and mining efficiency are setting a strong foundation for future growth. “As BTCFi continues to grow, Rootstock is well-positioned for broader adoption through core upgrades,” noted analyst Andrew Yang from Messari. Rootstock’s Q1 2025 marks a milestone in merged mining, amidst a decrease in DeFi activity, showcasing a unique blend of challenges and innovations. Record Breaking Merged Mining Participation in Rootstock In the first quarter of 2025, Rootstock registered an impressive merged mining participation rate of 81%, up from 56.4% the previous quarter. This robust performance can be attributed to the collaborative efforts of major mining pools such as Foundry and SpiderPool. According to Messari’s inaugural “State of Rootstock” report, this surge reflects growing confidence among miners, enhancing network security and hash power. Hash Power and Network Maturity The spike in participation elevated Rootstock’s hash power to over 740 exahashes per second, exceeding Bitcoin’s total network hashrate recorded in October 2024. This indicates a significant stride in network maturity regarding merged mining growth. Moreover, alongside improved mining engagement, transaction fees saw a reduction of about 60%, fostering a more user-friendly environment and enhancing Rootstock’s competitive edge within the Bitcoin layer-2 ecosystem. Decline in Total Value Locked (TVL) Amidst Achievements Despite the positive mining metrics, Rootstock’s DeFi ecosystem witnessed a notable decline in total value locked (TVL) , dropping 20% to $179.9 million in Q1 2025. The decrease is mirrored in Bitcoin-denominated TVL, which fell by 7.2%. The TVL initially surged to $244.6 million during a Bitcoin price rally in January, but subsequent months reflected a cooling market. Comparative Declines in the DeFi Landscape For context, the Ethereum-based DeFi ecosystem experienced a sharper decline, with its TVL shrinking by 27% due to macroeconomic uncertainties and events such as the $1.4 billion Bybit exploit. Rootstock’s stablecoin market is also experiencing shifts, with USDt (USDT) remaining the frontrunner but witnessing a drop in market share from 41.3% in Q4 2024 to 27.5% by the end of Q1. User Engagement and Activity Trends Engagement metrics further reveal a complex narrative: active addresses dwindled by 26.5% while new addresses fell sharply by 54.7%. Interestingly, daily transactions exhibited slight growth, increasing by 4.3% to an average of 11,524 transactions each day. This dichotomy illustrates a critical point: while the broader interest appears to be waning, the transactions that do occur reinforce the fundamental utility of Rootstock’s platform. Innovations and Future Directions for Rootstock On the innovation front, Rootstock activated the Lovell 7.0.0 upgrade, significantly improving EVM compatibility and smart contract productivity. The platform is also expanding its ecosystem through partnerships with LayerZero and Meson Finance, demonstrating an ongoing commitment to enhancing developer engagement. Initiatives like a new hackathon and improvements to the governance platform, RootstockCollective, are poised to stimulate fresh innovation within the community. Strategic Importance of User-Friendly DeFi Solutions Alexei Zamyatin, co-founder of the Bitcoin layer 2 Build on Bitcoin, emphasized the market opportunity awaiting the first user-friendly suite of DeFi products on Bitcoin. His remarks highlight a key aspect of the market landscape; as competition intensifies, Rootstock’s ongoing upgrades and ecosystem expansions will be critical for capturing a larger share of a prospective 300 million Bitcoin users. Conclusion In summary, while Rootstock’s merged mining statistics signal a prosperous future for mining within the Bitcoin ecosystem, the decline in DeFi TVL presents significant challenges. Rootstock is at a pivotal point where strategic innovations, coupled with user-focused development initiatives, will determine its trajectory in the highly competitive crypto landscape. Addressing user engagement and enhancing platform utility will be essential as Rootstock strives for broader adoption and acceptance within the market.

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BeatSwap is evolving towards a full-stack Web3 infrastructure, covering the entire lifecycle of IP rights.

The core product "Space" is scheduled to launch in Q2 2026, driven by SocialFi


BeatSwap, a global Web3 Intellectual Property (IP) infrastructure project, is attempting to overcome the current fragmentation limitations of the Web3 ecosystem, building a full-stack system that covers the entire lifecycle of IP rights.


Currently, most Web3 projects are still in the stage of functional fragmentation, often focusing only on a single aspect, such as IP asset tokenization, transaction functionality, or a simple incentive model. This structural dispersion has become a key bottleneck hindering the industry's scale application.


BeatSwap's approach is more integrated, integrating multiple core modules into the same system, including:


· IP authentication and on-chain registration

· Authorization-based revenue sharing mechanism

· User-engagement-driven incentive system

· Transaction and liquidity infrastructure


Through the above integration, the platform builds an end-to-end closed-loop path, allowing IP rights to complete a full cycle of "creation, use, and monetization" within the same ecosystem.


Expanding from Web3 to a broader market: Restructuring the music industry's supply-demand structure


BeatSwap is not limited to existing crypto users but is attempting to take the global music industry as a starting point, actively creating new market demand. Its core strategies include:


Exploring and incubating music creators (Artist discovery)

Building a fan community

Igniting IP-centric content consumption demand


The current global music industry is valued at around $260 billion, with over 2 billion digital music users. This means that the potential market corresponding to the tokenization and financialization of IP far exceeds the traditional crypto user base.


In this context, BeatSwap positions itself at the intersection of "real-world content demand" and "on-chain infrastructure," attempting to bridge the structural gap between content production and financial flow.


"Space" to Launch in Q2 2026: Building the Core of SocialFi


BeatSwap's upcoming core product "Space" is scheduled to launch in the second quarter of 2026. This product is defined as the SocialFi layer in the ecosystem, aiming to directly connect creators with users and achieve deep integration with other platform modules.


Key designs include:

A fan-centric interactive mechanism

Exposure and distribution logic based on $BTX staking

User paths connected to DeFi and liquidity structures


Thus, a complete user behavior loop is formed within the platform: Discovery → Participation → Consumption → Rewards → Trading


$BTX Token Mechanism: Evolving from an Incentive Tool to a Value Carrier


$BTX is designed to be a core utility asset within the ecosystem, rather than just a simple incentive token, with its value directly tied to platform activity and IP use cases.


Main features include:


· Yield distribution based on on-chain authorized actions

· Value reflection based on IP usage and user engagement dynamics

· Support for staking and DeFi participation mechanisms

· Value growth driven by ecosystem expansion


With the increased frequency of IP use, the utility and value support of $BTX will enhance simultaneously, helping alleviate the "disconnect between value and utility" issue present in traditional Web3 token models to some extent.


Accelerating Global Exchange Layout: Enhancing Liquidity and Accessibility


Currently, $BTX has been listed on several mainstream exchanges, including:


Binance Alpha

Gate

MEXC

OKX Boost


As the launch of "Space" approaches, BeatSwap is actively pursuing more exchange listings to further enhance liquidity and global accessibility, laying a foundation for future market expansion.


Beyond Web3: Aiming for a Larger-Scale Integration of Content and Finance Markets


BeatSwap's goal is no longer limited to the traditional Web3 narrative but aims to target over 2 billion digital music users and a trillion KRW-scale content market.


By integrating content creators, users, capital, and liquidity into a blockchain framework centered around IP rights, BeatSwap is striving to build a next-generation infrastructure focused on "IP tokenization."


Conclusion


BeatSwap integrates IP authentication, authorization distribution, incentive mechanism, transaction system, and market construction to establish a unified structure that bridges the full lifecycle path of IP rights.


With the launch of the Q2 2026 "Space," the project is expected to become a key infrastructure connecting content and finance in the IP-RWA (Real World Assets) track.


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