Woofun AI reports that Rootstock Labs is redirecting its product strategy toward Bitcoin miners and digital asset treasury companies as overall DeFi liquidity contracts. Richard Green, Head of Ecosystem and Institutional Relations at Rootstock Labs, highlighted this shift at the BTC Prague conference, noting that traditional crypto-native traders and hedge funds have largely retreated due to broader capital outflows.

Data indicates that the total value locked in DeFi protocols has declined from approximately $180 billion in October last year to around $70 billion currently. Consequently, Rootstock is tailoring lending and yield offerings to users who hold substantial amounts of BTC but require liquidity or yield generation without divesting their assets. Green asserts that demand for Bitcoin DeFi is now concentrated among a few high-capital niche groups rather than being widely distributed. For project teams, the primary challenge has evolved from scaling user acquisition to designing products that address real balance sheet requirements.