Bitcoin’s DeFi Paradox: Record Security Amid Declining Engagement in 2025

In early 2025, Bitcoin’s DeFi ecosystem presents a paradoxical scenario. While Rootstock, the leading smart contracts platform on Bitcoin, achieves unprecedented network security metrics, it simultaneously faces a decline in user engagement and capital inflows. This contrast highlights the complex dynamics shaping Bitcoin’s DeFi landscape as of May 2025.

DeFi On Bitcoin Sends Mixed Signals In 2025

Bitcoin’s DeFi ecosystem presents a paradox in early 2025. Rootstock, the dominant smart contracts platform on Bitcoin, achieves record network security metrics while facing declining user engagement and capital inflows.

The platform’s merged mining participation reaches an unprecedented 81% in Q1, with hash rate soaring beyond 740 exahashes per second—surpassing Bitcoin’s own October 2024 levels. This security milestone contrasts sharply with a 20% quarterly drop in Total Value Locked to $179.9 million and a 26.5% decline in active addresses, despite marginal growth in daily transactions.

Bitcoin’s $1 Million Forecast Amid U.S. Dollar Concerns

Market experts are making waves with a bold prediction: Bitcoin could surge to $1 million per coin. This isn’t mere speculation—it’s tied to serious economic warnings about the U.S. dollar’s stability. Stephen Jen, CEO of Eurizon SLJ Capital, and economist Joana Freire highlight a looming $2.5 trillion "avalanche" threatening the dollar due to rising national debt, deficits, and loose monetary policy.

The argument centers on eroding confidence in traditional finance, with bitcoin poised as a hedge. While such forecasts often draw skepticism, the underlying macroeconomic concerns lend credence to the narrative. Cryptocurrency’s role as a store of value gains traction as fiat currencies face unprecedented pressures.

Bitcoin Price To Hit $115K in Next 60-Days, Predicts Analyst Timothy Peterson

Bitcoin has surged to $104,000, nearing its all-time high of $109,000, with analyst Timothy Peterson forecasting a breakout to $115,000 within 60 days. Historical data since 2015 shows Bitcoin in this position nearly 300 times, with 98% of cases leading to new highs.

Peterson’s analysis highlights the cryptocurrency’s bullish trends, suggesting an imminent all-time high. Market watchers are closely monitoring BTC’s momentum as it approaches critical resistance levels.

Bitcoin Price Prediction: How Much Will 1 BTC Be Worth in May 2025?

Bitcoin’s price hovers around $103,000 after a significant breakout, signaling a potential accumulation phase. Historically, such consolidation precedes major bullish movements, suggesting new highs may be on the horizon.

Technical indicators have reached critical levels, reinforcing expectations of an upward trajectory. Market participants are closely watching for a breakout or rejection as the token stabilizes above the $100,000 threshold.

Bitcoin Skyrockets: 344K New Wallets Created In Just 2 Days

Bitcoin’s resurgence has captured market attention as it breaches the symbolic $100,000 threshold. A staggering 344,620 new wallets emerged within 48 hours, signaling a revival of retail FOMO not seen since previous bull cycles.

The velocity of adoption suggests renewed institutional confidence, yet seasoned traders note parallels to historic volatility patterns. Liquidity conditions remain favorable, but derivative markets show mounting leverage that could amplify corrections.