Rootstock Labs’ institutional and ecosystem lead, Richard Green, said that the continued contraction of liquidity in the DeFi market has prompted Bitcoin DeFi projects to adjust their development strategies. Data shows that the total value locked (TVL) across DeFi protocols has fallen from about $180 billion in October last year to roughly $70 billion. Rootstock is currently shifting its focus to specific groups such as Bitcoin miners, Bitcoin reserve companies, and long-term holders, offering Bitcoin-collateralized loans and yield products. Although the recent Bitcoin Layer 2 project Botanix shut down due to insufficient demand, Green believes that BTCFi has not lost demand, but is instead concentrating on smaller niche markets with greater depth of demand, such as miner financing and institutional investors’ Bitcoin tokenization fund strategies. (The Block)

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