Rootstock Executive: Bitcoin DeFi Demand Concentrated Among a Small Group of Deep-Pocketed Users

Odaily Planet Daily News: Richard Green, Head of Ecosystem and Institutional Relations at Rootstock Labs, stated that as overall DeFi liquidity continues to decline, Bitcoin DeFi projects are pivoting their focus toward smaller but deeper-pocketed user groups.

Speaking at the BTC Prague conference, Green noted that the crypto-native traders and hedge funds that were once easily accessible have largely retreated due to capital outflows from the DeFi market. Data shows that the total value locked in DeFi protocols has fallen from approximately $180 billion in October last year to around $70 billion currently.

Against this backdrop, Rootstock is targeting its products—such as lending and yield offerings—toward Bitcoin miners and digital asset treasury companies. These users typically hold large amounts of BTC but may need to access liquidity or generate yield without selling their assets.

Green believes that current demand for Bitcoin DeFi is not widely distributed but rather concentrated among a few high-capital niche groups. For project teams, the key challenge is no longer acquiring users at scale targeting general DeFi participants, but designing products around real balance sheet needs.