Decentralized finance (DeFi) on the Bitcoin blockchain should be in its infancy relative to Ethereum, however Bitcoin DeFi (BTCFi) is changing into safer and cheaper, crypto analytics agency Messari stated in a brand new report.
A central participant is Rootstock, one of many oldest Bitcoin layer-2 tasks, crypto analytics agency Messari stated in its “State of Rootstock” report, revealed on Thursday.
Rootstock is now secured by 81% of Bitcoin’s whole hashrate, which means miners that account for quantity the hashrate are additionally approving transactions on the layer 2. The determine was simply 56% earlier than the the onboarding of Foundry and Spiderpool, the world’s largest and sixth-largest mining swimming pools, respectively, in February.
Messari additionally noticed that transaction charges on Rootstock are 95% cheaper than the common Bitcoin transaction and 55% cheaper than these on Ethereum.
Rootstock is one in all quite a few tasks seeking to deliver better utility to Bitcoin by increasing the supply for DeFi with good contracts, enabled by “BitVMX”, a modified model of the BitVM programming language. Different outstanding Bitcoin layer-2 tasks embody Stacks and BOB (“Construct on Bitcoin”).
The challenge has additionally linked with bridging protocol LayerZero to allow Rootstock-native functions to attach with dozens of different blockchains, together with Ethereum and Solana. Its momentum units the stage for rising adoption of BTCFi by the rest of 2025, in accordance with Messari.
“As BTCFi continues to develop, Rootstock is well-positioned for broader adoption by core upgrades like a 60% discount in transaction charges, alongside sustained funding in builder schooling and incentive applications,” Messari analyst Andrew Yang stated.
Learn Extra: Bitcoin’s Position in DeFi Is ‘Untapped Alternative,’ Binance Analysis Says