Rootstock saw modest growth in Q3 2025, particularly in DeFi TVL, average transaction fees, and merged mining security.
In contrast, the following network metrics softened: total transactions, average daily active addresses, total new addresses, USD-denominated revenue, and rBTC-denominated TVL.
Key technical progress included the Reed network upgrade (one of Rootstock’s most significant consensus-level improvements to date), which reduced BTC withdrawal costs by 60% and expanded PowPeg signers to 20, alongside PowPeg v3.0 and RSKj Lovell 7.2.0, improving bridge usability and EVM parity.
Ecosystem integrations with Bedrock, Orbiter Finance, and LayerBank's auto-looping feature enhanced Rootstock’s BTCFi stack through lending, restaking, and automated yield strategies.
The RootstockCollective DAO advanced in Q3 with the V6.0 and V6.1 upgrades, adding USDRIF-denominated grants, milestone-based funding, and a refreshed governance user experience.
The quarter also saw Rootstock’s growing institutional focus with Rootstock Vaults teased as a compliant vehicle for BTC/USD-pegged yields, and Avalon’s launch expanded the native DeFi stack, strengthening Rootstock’s positioning as an emerging institutional BTCFi hub.
Primer
Rootstock is a permissionless Bitcoin sidechain that launched its mainnet in January 2018. The project extends Bitcoin by enabling smart contract functionality while preserving Bitcoin’s security and monetary properties. Rather than introducing a native token, Rootstock uses BTC as its base asset in the form of “programmable Bitcoin” (rBTC), a token that maintains a two-way peg to Bitcoin.
rBTC is used for gas fees on Rootstock. The token allows owners to interact with decentralized applications (dApps) on the Rootstock network for minting, swaps, and more. rBTC uses the Powpeg bridging system that connects Bitcoin and Rootstock.
Rootstock’s total revenue declined from $195,701 in Q2 2025 to $178,943 in Q3, down 8.6% QoQ, while revenue in Bitcoin terms fell from approximately 2.0 rBTC to 1.6 rBTC (-22.2% QoQ). The network’s average transaction fee rose from $0.19 to $0.24 (0.000002 rBTC), a 26.0% increase from the prior quarter’s end. Despite the higher average fee, overall revenue decreased.
Network Overview
Rootstock’s total transaction count declined 23.9% QoQ, from approximately 1.0 million in Q2 2025 to 761,000 in Q3. Average daily transactions dropped from 11,523 to 8,272, a 28.2% QoQ decrease. During the quarter, daily activity generally ranged between 6,500 and 10,000 transactions, with brief surges above 13,000 in early October.
Rootstock’s user activity cooled in Q3 2025. Average daily active addresses fell 9.1% QoQ to 382 (from 420 in Q2), and average daily new addresses declined 56.6% to 39.6 (from 91.3). Despite the softer averages, late-quarter spikes were notable. On Aug. 26–29, 2025, active addresses ranged between 575–613, with new addresses between 297–441. Sept. 25–30, 2025, saw the strongest bursts. These increases coincide with Q3 ecosystem catalysts such as Golden Sats Season 3 (Sept. 2), ETHGlobal New Delhi presence (Sept. 28–29), and LayerBank’s launch on Rootstock (Sept. 29).
In Q3, Rootstock remained heavily secured by Bitcoin miners, with average merged-mining participation at 84.8%, down 2.6% QoQ from 87.1% in Q2. Within the quarter, daily participation strengthened: early July often ranged around 50-65%, while late August through September frequently registered 80–93% daily.
Ecosystem Overview
DeFi Diversity is a metric used to gauge the maturity, decentralization, and robustness of a decentralized finance (DeFi) ecosystem on a specific blockchain network. It reflects how widely the total value locked (TVL) is distributed across the protocols operating on that network.
Notably, in Q3, Rootstock’s DeFi diversity index increased from 3 to 4 (+33.3% QoQ), reflecting a gradual expansion of the ecosystem beyond its core incumbents.
DeFi TVL
Rootstock’s DeFi TVL was broadly stable in Q3 2025. USD-denominated TVL edged up 0.9% QoQ to $263.6 million from $261.2 million in Q2, while native TVL in rBTC declined 4.4% QoQ to 2,326.64 rBTC from 2,434.11 rBTC.
DeFi TVL by Protocol
In Q3, Money on Chain remained the largest protocol, but fell 19.2% QoQ to $103.9 million, representing 44.3% of the $234.5 million TVL. Sovryn rose 8.4% QoQ to $43.7 million (18.7% share of the TVL), and Uniswap V3 increased 9.5% QoQ to $38.3 million (16.3% share of the TVL). In contrast, Sovryn was broadly flat at $18.2 million (+0.3% QoQ, 7.8% share of the TVL).
Smaller protocols grew in general with Tropykus Finance to $14.2 million, up 7.9% QoQ, RIF On Chain to $9.1 million, up 10.4% QoQ, and “Others” to $6.9 million, up 4.2% QoQ. Liquidity remains concentrated amongst Money on Chain, Sovryn, and Uniswap V3, comprising ~79% of the total TVL.
Stablecoins
In Q3, DOC became the largest stablecoin on Rootstock with $3.9 million in TVL (+18% QoQ, 28.7% share), while DLLR held second at $3.6 million (+1.6% QoQ, 25.9% share). XUSD rose to $2.2 million (+5.4% QoQ, 15.5% share), USDRIF increased to $1.6 million (+47% QoQ, 11.6% share), and Others expanded to $690,828 (+29.8% QoQ, 4.9% share). USDT declined to $1.8 million (−42% QoQ, 13.3% share).
Aggregate stablecoin TVL was broadly unchanged at $13.9 million (+0.8% QoQ). The mix points to a consolidation around DOC and DLLR and a rotation out of USDT, rather than broad-based market growth.
Ecosystem Highlights
Rootstock’s ecosystem continued to expand in Q3 as several external teams integrated their products with the network, deepening its BTCFi stack and broadening Bitcoin’s onchain utility. Notable integrations included Avalon Financefor Bitcoin-backed lending and borrowing, Bedrockfor BTC liquid restaking, Orbiter Financefor cross-chain bridging, FordeFifor institutional-grade custody and DeFi access, and auto-looping withLayerBank, which introduced leveraged BTC yield strategies. A complete list of the projects being built can be seen via Rootstock’s Ecosystem Portal.
Roadmap Progress
In Q3, Rootstock achieved key roadmap milestones advancing its BTCFi ecosystem and network infrastructure: (i) USDT0 was integrated on July 15, 2025, introducing native stablecoin liquidity for Bitcoin-backed DeFi; (ii) Avalon Finance launched in early September, enabling Bitcoin-collateralized lending for retail and institutions; (iii) the Reed Network Upgrade (Aug. 21, 2025) activated SegWit PowPeg, cutting withdrawal costs by 60%, expanding signers to 20, and preparing for the BitVMX-powered Union Bridge; (iv) PowPeg v3.0 improved bridge UX with WalletConnect and QR-based BTC–rBTC transfers, complemented by new integrations with Orbiter Finance and Bedrock for seamless Bitcoin liquidity; and (v) RSKj Lovell 7.2.0, the Rootstock Scaffold toolkit, and parallel transaction testing, enhanced scalability, interoperability, and developer onboarding.
Technical Developments
Rootstock’s third quarter of 2025 was defined by a series of major protocol and developer tooling upgrades that strengthened the network’s bridge architecture, EVM compatibility, and overall scalability.
Flyover v2.2 Upgrade
Rootstock’s bridge infrastructure advanced further with the release of Flyover v2.2. The upgrade introduced Flyover SDK v1.6.4, improving performance and reliability for wallet and dApp integrations, and upgraded the Liquidity Provider Server (LPS) to v2.2, allowing liquidity providers to set percentage-based fees aligned with transaction size. This change improved incentives and competitiveness within the liquidity network.
PowPeg Firmware Upgrade and v3.0 Release
In July, Rootstock introduced a significant upgrade cycle for its Bitcoin bridge infrastructure. The PowPeg firmware update enhanced the hardware security module (HSM) layer, improving performance and security ahead of the Reed and SegWit network upgrades. Shortly after, the network launched PowPeg v3.0, a major release that modernized the user experience for BTC-to-rBTC conversions. The update added WalletConnect integration via Reown, QR-based bridging, UTXO selection, and a one-tap Max function, establishing a smoother and more accessible bridge flow for both institutional and DeFi participants.
RSKj Lovell 7.2.0
Also released in July, the RSKj Lovell 7.2.0 client upgrade advanced Ethereum compatibility by aligning logIndex behavior with Ethereum clients and introducing a state override feature for eth_call simulations. These enhancements improved Rootstock’s EVM parity, expanded developer testing capabilities, and increased interoperability across multi-chain environments.
Reed Network Upgrade
The Reed Network Upgrade, discussed on Aug. 21, 2025, and activated on Oct. 1, 2025, represented a major step toward deeper decentralization and bridge efficiency. The upgrade cut BTC peg-out costs by 60%, expanded PowPeg signers from 9 to 20, and established the technical foundation for the Union Bridge, Rootstock’s forthcoming BitVMX-powered, trust-minimized bridge. Reed marked one of the network’s most important consensus-level improvements to date, enhancing both security and capital efficiency for Bitcoin DeFi.
Rootstock Scaffold Toolkit
Capping off the quarter, Rootstock launched Rootstock Scaffold, an open-source developer framework inspired by Scaffold-ETH. Supporting Hardhat and Foundry, Wagmi + Viem hooks, and Next.js + RainbowKit integration, Scaffold enables developers to build, test, and deploy dApps on Rootstock in minutes. The toolkit significantly lowers onboarding friction for EVM developers entering the Bitcoin DeFi ecosystem.
Community Updates
Governance
Over its first year, the DAO supported 15+ new ecosystem projects, distributed over 1.8 BTC and 750,000 RIF through Collective Rewards, and surpassed 25 million stRIF delegated. Q3 specifically saw multiple grant executions, product upgrades, and compliance actions, reflecting the DAO’s ongoing transition toward a more structured and scalable governance model. On the platform side, RootstockCollective V6.0 and V6.1 marked two significant upgrades:
V6.0 introduced a comprehensive UX overhaul, featuring WalletConnect via Reown, native support for Ledger and Trezor, and a migration to The Graph for enhanced data performance.
V6.1 expanded functionality with USDRIF-denominated grant payouts, milestone-based funding, and refined builder-backing interfaces.
Notable grant approvals included:
Rootstock QuestHub (146,000 RIF + 0.0268 rBTC): a gamified onboarding hub by Vottun that rewards users for completing technical and DeFi-related quests.
BTCFi for Institutions (176,819 RIF): developed by Aconcagua Finance and Bóveda AI to merge multisig custody with DeFi access for institutional-grade participants.
Alphaday RSK Dashboard (70,560 RIF): a Rootstock data aggregator unifying news, governance, and market data into a single dashboard.
All-or-Nothing Crowdfunding (0.093 rBTC): an open-source smart contract enabling decentralized Kickstarter-style fundraising on Bitcoin.
Winks.fun (0.078 rBTC): an SDK for embedding Rootstock transactions directly into tweets, bridging social engagement and onchain interaction.
ONG Bitcoin Argentina (78,700 RIF): a large-scale Latin American education and infrastructure initiative supporting Rootstock node deployment, DeFi workshops, and the Descentralizar 2025 event.
Rootstock Ecosystem Roadshow (6,500 USDRIF): a multi-country tour by mimLABS hosting hands-on DeFi workshops across Argentina, Spain, and Chile.
In governance operations, the DAO formalized partnerships and compliance frameworks. Tally was officially recognized as a builder supporting Rootstock governance infrastructure, powering onchain proposal creation and voting.
Campaigns & Developer Initiatives
Rootstock’s community campaign and developer initiatives in Q3 focus on ecosystem growth through hands-on engagement, incentives, and education. Regular touchpoints such as the Bitcoin Café series in Japan, the monthly developer community calls, and the weekly Bitcoin Builders Call strengthened coordination and grassroots participation across the global builder network. Beyond these ongoing initiatives, other notable programs included:
Golden Sats Seasons 2 & 3 Rootstock continued its flagship rewards program with the launch of Golden Sats Season 2 in August, featuring LayerBank and jumper as the campaign partners. The event incentivized users to explore Bitcoin-native lending and borrowing protocols through interactive tasks. This momentum carried into Golden Sats Season 3 in September, introducing Avalon Finance, Stargate, Oku, Sushi, and Woodswap as the lead partners. Participants earned rewards by completing onchain DeFi activities such as borrowing, staking, and liquidity provisioning.
Hacktivator 2.0 and 3.0 The second season of Hacktivator, Rootstock’s open-source contribution marketplace, concluded in early August with submissions from 21 countries and 290 entries, distributing over $32,000 in rewards. The campaign showcased developer creativity across new smart contracts, SDK integrations, and educational resources. Building on this success, Rootstock teased Hacktivator 3.0, which is set to expand the incentive model for open-source contributors with more granular recognition across development, design, and translation efforts.
ETHGlobal New Delhi Sponsorship Rootstock deepened its connection to the broader EVM ecosystem through its ETHGlobal New Delhi sponsorship, offering $10,000 in prizes to developers building Bitcoin DeFi applications.
Ambassador Program Rootstock relaunched its Ambassador Program mid-quarter, empowering educators and community leaders to expand Bitcoin DeFi adoption through content, events, and local initiatives. Alongside its developer workshops and hackathon presence, these programs cultivated a global grassroots network of contributors working to grow the BTCFi ecosystem.
Closing Summary
Rootstock’s Q3 performance reflected a cooldown in network activity, but continued expansion of its Bitcoin DeFi infrastructure. Total transactions declined 27.4% QoQ to 761,178, average daily active addresses dropped 9.1% to 382, and new addresses fell 56.6% to 39.6. Network revenue decreased 8.6% to $$178,943, despite a 26% rise in average transaction fees to $0.24. Merged mining participation averaged 84.8%, slightly down from Q2. On the DeFi side, total TVL in USD terms remained stable at $263.6 million (+0.9% QoQ), while native TVL in rBTC slipped 4.4%. Importantly, DeFi diversity increased, with Money On Chain remaining dominant at $103.9 million (44.3% market share), although its share declined as Sovryn (+8.4%) and Uniswap v3 (+9.5%) gained ground. Stablecoin TVL held steady at $13.9 million, led by DOC (28.7%) and DLLR (26.0%), with USDRIF up 47.0% QoQ.
Ecosystem momentum centered on deeper BTCFi functionality and institutional-grade primitives. The launch of USDT0 and integrations with Avalon Finance, Bedrock, Orbiter Finance, and LayerBank expanded Rootstock’s lending markets, restaking flows, cross-chain liquidity, and automated yield strategies. Avalon’s arrival in particular strengthened Rootstock’s positioning as an emerging institutional BTCFi platform, complementing infrastructure upgrades like the Reed network upgrade, PowPeg v3.0, and Flyover v2.2, which collectively enhanced bridging security, cost efficiency, and UX. Developer adoption continued to improve with RSKj Lovell 7.2.0, Rootstock Scaffold, and parallel-execution testing. RootstockCollective governance matured through V6.0 and V6.1, introducing milestone-based grants, USDRIF payouts, and an upgraded UX, while grassroots programs, including Golden Sats, Hacktivator, the Ambassador Program, and recurring builder calls, sustained ecosystem activity.
Overall, Q3 marked a quarter of infrastructural maturity and ecosystem diversification, focusing less on raw user growth and more on reinforcing Rootstock’s long-term position as Bitcoin’s programmable, yield-bearing layer.
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