Rootstock Boosts DeFi on Bitcoin: Fees 60% Lower by 2025, Messari Says

Rootstock has reached an all-time high in Bitcoin merge mining after integrating one of the world's largest pools, Foundry, increasing security and reducing transaction fees by 60% in the first quarter.

The Rootstock (RSK) platform is starring in a crucial transformation in the panorama of decentralized finance (DeFi) on the Bitcoin network. Acting as a sidechain that operates in parallel to BitcoinRootstock enables the execution of smart contracts compatible with the Ethereum Virtual Machine (EVM), but with the security and robustness offered by the Bitcoin ecosystem. 

In 2025, this platform stands out for efficiently integrating merged mining, which leverages Bitcoin's mining power to also validate the Rootstock network without additional hardware or energy costs. Thanks to this mechanism and the integration with large mining pools, Rootstock has achieved not only a 60% reduction in transaction fees, but also to consolidate a more secure and efficient network, driving mass adoption and the continued development of decentralized financial applications on top of Bitcoin.

Record growth in 2025

During the first quarter of 2025, Rootstock reached a historic milestone by increasing its stake in merged mining to 81%, far exceeding the 56,4% recorded at the end of 2024, according to the report "State of Rootstock Q1 2025» published by Messari, recently. 

This growth was primarily driven by the addition of Foundry, one of the largest Bitcoin mining pools in the world, which contributed around 200 exahashes per second (EH/s), bringing the Rootstock total power at over 740 EH/sThis figure even exceeds the total Bitcoin hashrate observed in October 2024, and represents almost 80% of the network's current computing power. 

Merged mining: a driver of safety and efficiency

Merged mining allows miners to simultaneously validate blocks on both the Bitcoin and Rootstock networks using the same hardware and computing power, optimizing resources and earning rewards on both chains. 

This process contributes significantly to Rootstock's security, as it leverages the immense computational power inherent in Bitcoin, strengthening protection against malicious attacks. Furthermore, by sharing hash power, transaction validation efficiency increases, allowing the network to process larger volumes without excessive congestion.

A practical example is a miner who doesn't have to choose between mining Bitcoin or Rootstock; thanks to merged mining, both processes run in parallel, increasing their chances of generating rewards and strengthening the infrastructure of both networks without additional investment.

Rootstock rates reduced by 60%

One of Rootstock's most significant innovations in 2025 is the 60% reduction in transaction fees. This achievement stems from increased mining power and improved security thanks to merged mining, which reduces congestion and allows for a higher volume of transactions to be handled at lower costs.

On the other hand, this decrease in fees is especially relevant in the DeFi ecosystem, where high fees have historically limited scalability and access for users and developers. Now, these low fees on Rootstock They promote a more user-friendly and economically accessible experience, boosting the growth and diversification of decentralized applications.

For example, someone looking to trade tokens or borrow through DeFi applications on Rootstock will be able to do so while paying significantly less in fees, lowering the barriers to entry and broadening active participation.

LayerZero integrates to boost interoperability

With the aim of expanding its capabilities and facilitating interaction between different blockchains, Rootstock has incorporated the LayerZero protocol, an advanced cross-chain messaging solution. LayerZero enables the secure, fast, and efficient transfer of assets and data between Rootstock and over 100 blockchains, including major ecosystems like Ethereum and Binance Smart Chain.

This bridge between chains, enabled by Stargate, eliminates the complexities and risks associated with traditional interoperability, promoting a cross-platform environment that expands the possibilities for users and developers. This integration increases Rootstock's competitiveness and appeal within the global DeFi ecosystem, positioning the network as an essential node for cross-chain collaboration.

A practical benefit of this integration is that it allows a user to transfer tokens between Rootstock and Ethereum without cumbersome processes, facilitating investment diversification and the use of decentralized financial products with greater flexibility.

Certificate

Bitcoin 101 Course

Medium level

In Bit101Me Academy's Bitcoin 2 Course you can continue your crypto education and learn what Bitcoin is, where it comes from and how to obtain it.

GRATIS 35 lessons

Start now

Lovell 7.0.0, an improvement to EVM compatibility

In March, Rootstock released the Lovell 7.0.0 upgrade, which brings significant improvements to the network, focusing on security, scalability, and improved compatibility with the Ethereum Virtual Machine (EVM). The implementation of this upgrade simplifies smart contract migration and development, making it easier for developers familiar with Ethereum to deploy their dApps on Rootstock with less effort and cost.

Among the improvements are optimizations to EVM codes to speed up smart contract execution and reduce gas costs, as well as a robust protocol for secure multi-signature validation on its PowPeg bridge, which strengthens the network's security and decentralization. Additionally, an instant synchronization mode for nodes was implemented, speeding up startup and improving the operational experience.

For example, with Lovell 7.0.0, a developer can migrate an Ethereum project to Rootstock, taking advantage of lower fees and the security backing of the Bitcoin ecosystem, thus boosting speed and cost-effectiveness in DeFi development.

Ecosystem diversification and stablecoins at Rootstock

Although the first quarter of 2025 saw a slight 20% decline in the total value locked (TVL) in DeFi within Rootstock, the ecosystem is clearly diversifying, especially in the stablecoin market. USDT remains the leader with a 27,58% market share, but alternatives like DOC and DLLR have gained ground, indicating healthy competition and expansion.

This growth in the stablecoin market strengthens network resilience and offers users a variety of options based on their security, liquidity, and financial productivity needs. While active addresses show a slight decline, daily transactions continue to increase, reflecting a increasing and constant use of the ecosystem.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.