Rootstock exec: Bitcoin DeFi demand concentrated among a small group of high-capital users

Richard Green, Head of Ecosystem and Institutional at Rootstock Labs, stated that as overall DeFi liquidity continues to decline, Bitcoin DeFi projects are shifting their focus towards a more niche but deeper-pocketed user base.

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

Against this backdrop, Rootstock is targeting Bitcoin miners and digital asset treasury companies, offering them lending and yield products. 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 is instead concentrated among a few financially strong niche groups. For project developers, the key is no longer achieving large-scale user acquisition among general DeFi users, but rather designing products around real balance sheet needs.