and the distribution of digital products.
State of Rootstock Q4 2024
- Rootstock ended the quarter strong and experienced an all-time high (ATH) in DeFi total value locked (TVL), reaching $254.9 million in December.
- RootstockLabs partnered with Alchemy, Alchemy is a blockchain development platform that provides infrastructure and tools for building applications. Alchemy offers APIs, node services, and developer tools to help streamline blockchain interaction, enabling projects to scale.
- MoneyOnChain continued as the leading application on Rootstock, increasing its TVL by 38.83% QoQ. MoneyOnChain continues to dominate Rootstock regarding TVL, increasing from $80.1 million in Q3 to $111.2 million in Q4.
- RootstockCollective announced Collective Rewards, an incentive mechanism designed to align builders and RIF stakers within the Rootstock ecosystem. By staking RIF, backers actively support projects and engage with the DAO. In return, they receive protocol-driven rewards like rBTC and RIF.
- Rootstock's total revenue increased 220.8% YoY. The company has seen substantial growth YoY, experiencing significant increases in revenue from $112,400 to $360,400. The growth demonstrates the additional revenue it can give to Bitcoin miners who choose to participate in merged mining to secure Rootstock’s network.
Rootstock is a permissionless Bitcoin sidechain that launched its mainnet in January 2018. It aims to bring smart contract functionality to the Bitcoin network. It does not have its own unique native token; instead, it uses BTC in the form of “Smart Bitcoin” (rBTC), which maintains a two-way peg to Bitcoin. rBTC is a bridged BTC version that is used for gas fees on Rootstock. It allows owners to interact with DeFi protocols and applications on the Rootstock network for minting, swaps, and more. rBTC uses a bridging system called Powpeg that connects Bitcoin and Rootstock.
Rootstock secures its network using merged mining and DECOR+ (Deterministic Conflict Resolution) consensus, a Proof-of-Work (PoW) protocol that maintains the Bitcoin block format.
Rootstock has several additional components, such as the Rootstock Virtual Machine (RVM), a forked version of the Ethereum Virtual Machine (EVM) that allows for high compatibility with EVM. Rootstock also features the Rootstock Infrastructure Framework (RIF), a token designed to scale Bitcoin utility by powering governance and grants through the RootstockCollective DAO. It also powers comprehensive blockchain-based infrastructure services such as the RIF Token, RIF Wallet, rBTC Flyover, RNS (RIF Name Service), and RIF Relay.
For a complete primer on Rootstock, refer to our Initiation of Coverage report.
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Key Metrics
Performance AnalysisFinancial Overview
Rootstock experienced significant growth YoY, increasing revenue by 220.8% from $112,400 to $360,400. Initiatives such as the RootstockCollective, BitVMX becoming open source, and multiple hackathon sponsorships have all contributed to the chain's growth. While some of this growth can be attributed to the overall positive increases in the crypto market, it's clear that the Rootstock ecosystem has made concerted efforts to continue growing the chain.
Network Overview
Rootstock’s active accounts fluctuated throughout Q4 2024, peaking at 991 in early October before declining to 250 by late December. Despite mid-quarter volatility, December saw a notable recovery, with active accounts reaching 592 on Dec. 8 2024, marking the quarter’s highest level. New accounts fluctuated in early Q4, with daily figures typically ranging between 10-260 in October and November. Over the course of December, Rootstock would not reach the highs of October and November; instead, it only reached a high of 155 new accounts on Dec. 28.
Rootstock’s transaction activity surged in Q4 2024, driven by a significant increase in December. Daily transactions remained steady in October and November, ranging between 7,500 and 14,000, before experiencing a sharp rise in December, peaking at 17,279 on Dec. 9th. December consistently recorded daily transaction counts above 15,000, marking the highest network activity levels for the quarter. November’s gradual transaction growth set the stage for December’s acceleration, suggesting catalysts such as the Bitcoin Genesis Countdown, Innovation grants, and Hacktivator program that started in November continued to push transaction growth into December.
Ecosystem and Development Overview
DeFi TVL 
Rootstock’s DeFi TVL surged in Q4, rising from $171.3 million in early November to a peak of $254.9 million in late December, marking a nearly 60% increase. The strongest growth occurred in December, with TVL climbing from $222.6 million on Dec. 19 to $254.9 million on Dec. 27. However, the quarter ended with a slight pullback to $222.5 million, reflecting short-term market fluctuations.
In contrast, rBTC-denominated TVL declined, fluctuating between 2,350 and 2,497 rBTC throughout November and December. This suggests that USD-denominated TVL growth was primarily influenced by Bitcoin price appreciation rather than a significant increase in locked BTC. The consistency in rBTC TVL reinforces Rootstock’s position as a reliable, Bitcoin-secured DeFi platform.
Stablecoin
In Q4, USDT remained the dominant stablecoin on Rootstock, with a total value of $5.6 million, despite a 4.95% decrease in market share QoQ. The most notable shift in the stablecoin landscape was DOC surpassing DLLR to become the second-largest stablecoin, capturing 22.08% of the market, an increase of 7.18% QoQ. DLLR, previously the second-largest stablecoin, followed at $2.8 million, reflecting a 3.27% decline in market share. As Rootstock’s ecosystem expands, stablecoin distribution has diversified, providing users with a broader range of options. While USDT remains the largest, its slight decline in dominance suggests an evolving market where alternative stablecoins are gaining traction.
DeFi TVL by protocol
Rootstock’s DeFi TVL grew QoQ, rising from $193.0 million to $225.6 million, marking a 16.91% increase. The quarter saw steady gains, with MoneyOnChain and Sovryn driving the growth, ending December at $111.2 million and $72.8 million, respectively. While mid-Q4 fluctuations slowed momentum, December emerged as a breakout month, with MoneyOnChain and Sovryn reaching quarter highs. This increase in TVL can be attributed to the concerted efforts of RootstockLabs to push for ecosystem growth continually and the overall crypto market experiencing increased activity.
IntegrationsIn Q4, several protocols were integrated into Rootstock to enhance network functionality and user experience. The most notable additions are highlighted below.
DeFi protocols:- Crypto Algebra: Algebra is a decentralized exchange (DEX) Engine. Its core focus is to build concentrated liquidity technology and allow projects to integrate its modular architecture. Algebra aims to enhance capital efficiency and increase trading volume.
- Pell Network: A Bitcoin staking platform, Pell focuses on omnichannel Bitcoin Restaking. Through its Decentralized Validated Service (DVS) network, Pell introduces an innovative approach to security. By leveraging BTC Restaking, Pell extends the capabilities of Bitcoin DeFi (BTCFi) into the security sector, unlocking new layers of functionality and capital efficiency.
- CrowdSwap: CrowdSwap is a DEX that facilitates cross-chain swaps from over nine different blockchains. With its Best Price Routing (BPR) feature, CrowdSwap can identify favorable prices across different pools.
- Hyperlane: On Nov. 21, 2024, Rootstock announced its integration with Hyperlane. Hyperlane is an interoperability framework that focuses on connecting chains quickly and affordably. Rootstock builders can create interchain apps and enable seamless token bridging.
- Thirdweb: Thirdweb is a development platform that helps users build applications on the blockchain. Rootstock and Thirdweb have been working together to teach developers how to build on Rootstock. In this series, titled “The Mastering Web3 Dev Tools series is here to guide you, " industry professionals taught users how to simplify smart contract deployment, streamline NFT creation, and improve user onboarding with fiat on-ramps.
- Metaverse HQ: Metaverse HQ is a questing platform. Users can complete various tasks in the RootstockCollective campaign. Each step unlocks rewards and builds its role in the RootstockCollective community.
- Ledger: The Ledger app now supports Rootstock via WalletConnect. Ledger is one of the largest hardware wallet providers globally. Prior to this partnership, users had no choice but to use a combination of Metamask and Ledger. Now, with direct access to Ledger Live via WalletConnect, users can have a more native experience when interacting with their crypto.
- Alchemy: Alchemy is a developer platform for building applications. Its APIs and SDKs make it easy to scale applications.
- The Graph: The Graph is a leading decentralized indexing and querying protocol that enhances data accessibility in the Rootstock ecosystem. This integration enables developers to efficiently query blockchain data, streamlining the development of DeFi, NFT, gaming, and marketplace applications on Rootstock. By leveraging The Graph’s decentralized indexing infrastructure, developers can build more scalable and efficient applications, reducing reliance on centralized data providers.
- QSTN: A protocol focused on unlocking insights, QSTN allows users to earn tokens by completing surveys. Protocols can upload surveys to QSTN and receive valuable insights.
Arrowhead 6.4.0: Arrowhead 6.4.0 was launched for Rootstock on Nov. 5, 2024, focused on introducing a fiat-stable minimum gas price feature designed to enable mining pools to automatically adjust gas price configurations based on Bitcoin’s price fluctuations. This feature aims to provide greater fee stability and improve cost predictability for network participants. The latest update also includes critical dependency upgrades, with Rootstock now offering full support for Java 21 LTS, ensuring long-term stability, security, and performance optimization for developers and node operators.
Arrowhead 6.5.0: The Arrowhead 6.5.0 upgrade for Rootstock, launched on Dec. 6, 2024, focused on optimizing the developer experience. The new update introduced different ways to debug and change the JSON-RPC interfaces.
Cookbook AI Assistant: On Dec. 11, 2024, Rootstock launched its AI assistant Cookbook. This AI assistant featured on its documentation page could generate TVL and chain info on Rootstock and, when prompted, answer any questions about Rootstock. The Assistant can also help users deploy contracts faster if they desire.
PowpegDefiLlama officially tracking the Powpeg Fast ModeAs of Nov. 16, 2024, DefiLlama announced that it was officially tracking the Powepeg Fast Mode bridge. The Powpeg Fast mode is done by integrating the RIF Flyover Protocol, which significantly reduces the number of confirmations needed to move BTC to rBTC. Reducing the block amount to two reduces the bridging time down to ~20 minutes compared to the native method, which would take 100 Bitcoin block confirmations, which would be ~17 hours. This marked a milestone for the Rootstock ecosystem as it allows users to view the Powpeg and its relevant information easily.
Powpeg composition change: On Dec. 28, 2024, the Powpeg underwent an update to change its Bitcoin deposit address.This update to Rootstock was implemented at block 7,069,806, and a new Bitcoin deposit address was introduced for any BTC-to-rBTC conversions.
Rootstock swaps with Boltz ExchangeIn Q4, Rootstock enhanced accessibility and liquidity with the launch of the Lightning Bridge, integrating with Boltz Exchange to enable seamless entry into the Rootstock ecosystem. This upgrade streamlined non-custodial swaps between BTC, LN-BTC, and rBTC, offering users faster and more efficient transactions. Later in the quarter, Boltz Exchange adjusted swap limits to increase user flexibility, doubling the maximum swap limit from 5 million to 10 million SATS and lowering the minimum threshold from 10,000 to 2,500 SATS. These refinements improved usability, reinforcing Rootstock’s commitment to enhancing Bitcoin-native interoperability.
Merged Mining
Over Q4, Rootstock maintained a 56.40% percentage of Bitcoin’s hashing power, up from 54.58% in the previous quarter. With the increase QoQ, the Bitcoin hashing power continues to trend positively. Rootstock continues to be in its “Stable phase” (between 30%- 60%); however, in this quarter, Rootstock’s increase in merged mining blocks percentage is very close to returning to its “Mature Phase” (Above 60%) as seen in Q2. The stable hashing rate seen in Q4 suggests a relatively consistent level of security backing Rootstock, which is crucial for network reliability and user confidence.
Qualitative AnalysisOpen-source BitVMXIn Q4, RootstockLabs advanced Bitcoin’s interoperability by open-sourcing BitVMX. BitVMX is an optimistic execution framework for running arbitrary programs on Bitcoin. Designed to establish a foundation for verifiable computation, BitVMX enables the execution of any CPU on Bitcoin. BitVMX enhances Bitcoin’s programmability, opening new possibilities for trust-minimized applications such as bridges, rollup settlements, and multi-party state channels.
Bitcoin Genesis countdownIn anticipation of the Bitcoin Genesis block, the Rootstock community held the Bitcoin Genesis countdown. This event involved participants completing tasks and quests across 17 different protocols on Rootstock, logging them on Galxe for a chance to win a share of a $100,000 prize pool by completing daily tasks. The event ran from Oct. 25, 2024, to Jan. 3, 2025.
Developer DAOThe Developer DAO is a developer-owned and governed community focused on building and learning in the crypto space. It provides users with opportunities and incentives to grow their knowledge in crypto. Developer DAO hosted a grants program that made $5,000 USD available for developers building on Rootstock. Applicants could submit their projects to Developer DAO and earn a portion of the $5,000 USD. Five winners were announced on Nov. 25, 2024. Each project was awarded $1,000 from the Developer Dao and Rootstock grant program.
Rootstock EducateDuring Q4, the Rootstock community made efforts to make Rootstock more accessible for builders. Rootstock Educate was a series of workshops that welcomed anyone to take lessons from industry experts on how to build on the Rootstock blockchain. From learning about Rootstock as a blockchain to building applications on Rootstock, Users attended six workshops to develop their skills.
LabitConfOn Nov. 1, 2024, RootstockLabs participated in the Latin America Bitcoin and Blockchain Conference, one of the leading blockchain conferences in Latin America. This conference brings together industry leaders and entrepreneurs from the Bitcoin and blockchain space.
Hacktivator ProgramOn Nov. 8, 2024, RootstockLabs organized Hacktivator, an incentivized program for those contributing to the ecosystem. Individuals who contributed code, created educational content, or wrote guides were eligible to earn rewards. With this program, RootstockLabs aims to reward individuals for helping build Rootstock.
Bitcoin Innovation GrantsRootstockCollective DAO announced it would conduct wave three of its Bitcoin Innovation Grants, which went live on Nov. 20, 2024. Projects could stake a minimum of 1,000 RIF and submit a proposal to the DAO. The community would vote on which project would receive a grant, which would be in rBTC and RIF.
Encode ClubIn partnership with Encode Club, RootstockLabs launched a four-week educational series on Rootstock featuring technical deep dives and building blockchain development skills. Encode Club is a platform focused on helping individuals build skills in emerging tech.
RootstockCollective DAO RewardsRootstockCollective introduced Collective Rewards for Backers, an incentive mechanism designed to align builders and RIF stakers within the Rootstock ecosystem. By staking RIF, backers actively support projects, engage with the DAO, and play a crucial role in shaping development through direct feedback. In return, they receive protocol-driven rewards, fostering a more dynamic and interconnected community. This initiative enhances DAO participation, strengthens community-driven feedback loops, and increases collaboration between stakers and builders, ultimately creating a sustainable, reward-based ecosystem. As Rootstock continues expanding its Bitcoin-secured DeFi network, Collective Rewards lays the foundation for long-term alignment and value creation among ecosystem participants.
Sergio Lerner named one of Coindesk’s most influential people in 2024On Dec. 11, 2024, Sergio Lerner, Chief Scientist at RootstockLabs and co-founder of Rootstock, was named one of the most influential people in crypto for 2024 by Coindesk. Lerner’s contributions to the Bitcoin ecosystem, such as BitVMX demonstrated his commitment to advancing Bitcoin’s scalability.
Closing SummaryQ4 marked a period of significant ecosystem expansion for Rootstock, with notable growth in TVL and increased developer engagement. Initiatives such as the Developer DAO contests, Hacktivator program, and the RootstockCollective Rewards for backers were key in fostering builder participation and strengthening the blockchain’s development pipeline. These efforts contributed to growth across financial and network metrics, positioning Rootstock for continued expansion into the new year. As the Rootstock community and RootstockLabs deepen its investment in developer tooling and ecosystem infrastructure, Rootstock remains well-positioned to capitalize on ongoing industry momentum and further solidify its status as a leading Bitcoin sidechain.