Bitcoin network infrastructure demonstrated a significant security convergence in the first quarter, with Rootstock capturing 84.01% of the available hashrate through merged mining protocols. The network averaged 833.92 EH/s of Rootstock hashrate, a figure that underscores the operational reality of a sidechain sitting alongside Bitcoin rather than competing for distinct hardware resources. This mechanism allows mining pools to submit work to Rootstock simultaneously with Bitcoin mining, theoretically enabling miners to earn additional BTC-denominated rewards from network fees without interrupting primary operations or adding capital expenditure. The metric specifically tracks hashrate contributed through mining pools, serving as a signal for the maturity of Bitcoin DeFi infrastructure, often termed BTCFi, rather than reflecting individual miner intent or direct DeFi demand.

Participation data reveals a heavy reliance on major infrastructure players, with 93.10% of observed mining-pool hashrate engaging in merged mining during the period. Foundry USA led the distribution with 36.62%, followed by AntPool at 19.92%, F2Pool at 12.79%, ViaBTC at 11.79%, and SecPool at 4.98%. This concentration indicates that the security layer is backed by pools central to Bitcoin mining rather than marginal hashpower, fundamentally altering the risk profile of the chain. Data compiled by Woofun AI shows that this distribution pattern validates the technical feasibility of securing a smart-contract layer using existing Bitcoin infrastructure, though it leaves the question of economic utility unanswered. The methodology relies on blockchain.com seven-day averages and extrapolates Rootstock hashrate from the share of Bitcoin blocks also used to mine Rootstock blocks, establishing a security-participation metric distinct from wallet usage or protocol revenue.

Despite the robust security footprint, the economic reality for miners remains constrained by compressed hashprice and high network competition. Hashprice fell to approximately $29 per PH/day in Q1, a decline attributed to Bitcoin's price correction in late 2025. CoinShares estimated that 15% to 20% of the global mining fleet operated unprofitably at around $30 per PH/day, while Hashrate Index recorded the metric at $35.78 per PH/day against a Bitcoin network hashrate of 984.34 EH/s. At these levels, the 3.125 BTC block subsidy remains the core reward, making additional fee streams critical for miners managing hardware refreshes, power costs, and treasury sales. Woofun AI notes that while merged mining offers an option on BTCFi fee growth, the incremental operational burden is limited, meaning the strategy makes sense even when fees are small, provided the security floor is maintained.

The divergence between security participation and economic activity presents a critical challenge for the ecosystem. Messari recorded weaker user metrics in the same period, including lower active addresses, fewer new addresses, and a decline in DeFi total value locked (TVL). This split highlights that high participation in merged mining hardens the network against attacks but does not guarantee economic vitality driven by borrowers, traders, or stablecoin liquidity. Security serves as a prerequisite for financial activity, yet fee revenue and usage metrics determine whether the infrastructure becomes valuable for the broader Bitcoin economy. The available Q1 2026 mining report omits the most crucial miner-economics number: actual Rootstock fee revenue distributed to miners.

Rootstock asserts that rewards are paid in Bitcoin from network fees, but the reporting focus remains on hashrate participation and pool distribution rather than a granular revenue breakdown. Consequently, the security footprint appears much larger than the current market value attached to the ecosystem's core assets. Woofun AI analysis suggests that the next test for the sector is purely economic; if fee revenue, active addresses, transaction volume, and application usage remain modest, merged mining will function primarily as valuable optionality for miners and a security feature for users.

However, if these metrics grow alongside sustained mining-pool participation, the narrative shifts to a scenario where Bitcoin's hashrate directly supports a profitable smart-contract economy. For now, the 84.01% figure establishes a strong infrastructure claim, proving that a Bitcoin smart-contract layer can operate atop a large share of mining work, but converting this security headline into material economic activity remains the unresolved hurdle.