Rootstock Sees Record Merged Mining Rate Despite Declining User Activity in Q1 2025
A new report from Messari reveals significant technical advances for Rootstock, but also shows a marked decline in user engagement amid volatile crypto markets.
On May 5, Bitcoin sidechain platform Rootstock recorded an impressive technical milestone in its Q1 2025 report published by blockchain analytics firm Messari. Accordingly, the merged mining rate on the network reached a record high of 81%, up sharply from 56.4% in the previous quarter — marking a major step forward in its strategy to ensure the security and decentralization of the network.
The achievement comes after Rootstock completed its integration with Foundry, the world's largest Bitcoin mining pool. The integration has enabled more miners to participate in block validation on Rootstock through merge mining, allowing them to simultaneously mine both Bitcoin and Rootstock without spending significant additional resources.
Transaction fees reduced, improving user experience
In addition, the average transaction cost on the Rootstock network has decreased by 60% compared to the previous quarter. This reduction is largely due to network optimization efforts between core developers and mining partners, which has expanded accessibility to users with low transaction needs.
The report also highlights the implementation of Lovell 7.0.0, Rootstock's latest major upgrade. This upgrade has:
Enhanced EVM (Ethereum Virtual Machine) compatibility, making it easier for Ethereum developers to deploy smart contracts on Rootstock;
Integrated LayerZero, a prominent cross-chain connectivity protocol, allowing users to transfer assets between blockchains more seamlessly.
User Activity Downturn
Despite its technical achievements, Rootstock experienced a significant decline in user activity metrics over the same period. Specifically:
On-chain revenue decreased by 24%, mainly due to lower transaction fees;
Daily active addresses decreased by 26.5%, indicating lower actual user usage;
New wallet addresses decreased by 55.7%, reflecting a slowdown in new user acquisition.
Looking Forward
Despite the decline in user metrics, Messari believes that the technical foundations that Rootstock built in Q1 will set the stage for a strong recovery in the following quarters. With an increasingly Ethereum-compatible ecosystem and expanding cross-chain connectivity, Rootstock has the potential to become an efficient, secure, and low-cost DeFi hub on the Bitcoin platform.