Rootstock Exec: Bitcoin DeFi Demand Concentrated Among a Small Group of High-Capital Users
Richard Green, Head of Institutional and Ecosystem 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-capital user base.
Speaking at the BTC Prague conference, Green noted that the previously easier-to-reach crypto-native traders and hedge funds have largely exited due to capital outflows from the DeFi market. Data shows that the total value locked in DeFi protocols has decreased from approximately $180 billion in October last year to around $70 billion currently.
Against this backdrop, Rootstock is pivoting its target users towards 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 the current demand for Bitcoin DeFi is not broadly distributed but is concentrated among a few capital-strong niche groups. For project teams, the key is no longer about mass user acquisition targeting general DeFi users, but rather designing products around real balance sheet needs.
