A Bitcoin layer-2 executive discussed how Bitcoin stories that were “overhyped” have now completely disappeared while the environment establishes.
In a Cointelegraph interview, Bitlayer co-founder Charlie Hu set out 3 Bitcoin stories that he thought were overhyped. This consisted of stories that surrounded Ordinals, layer-2s and re-staking.
According to Hu, among the overhyped stories in Bitcoin was non-fungible tokens (NFTs). The executive informed Cointelegraph that while engravings might have gone “to the moon,” Hu stated the age is “entirely gone.”
CryptoSlam information reveals that in the very first quarter of 2024, Bitcoin NFTs had a volume of $1.4 billion. In 2025 Q1, the volume is just at $280 million, revealing an 80% drop. The executive thinks that the 1,000 x days of Bitcoin NFTs might be over which individuals can’t anticipate comparable “insane” cost efficiencies any longer.
Are Bitcoin layer-2s running out of steam?
Apart from Bitcoin NFTs, Hu informed Cointelegraph that the buzz around Bitcoin layer-2 and Bitcoin re-staking has likewise decreased amongst investor.
Hu informed Cointelegraph that a minimum of 80 layer-2 networks intended to get moneyed at the start of 2024 when the layer-2 story was strong. The executive stated lots of jobs pitched their concepts to financiers, the media and various neighborhoods. Hu stated that while there was some buzz, this was “certainly over.”
Lots of other crypto executives and business owners resonate with Hu’s perspective about the passing away buzz around layer-2 communities. On Feb. 20, Stacks co-founder Muneeb Ali stated the “honeymoon stage” for Bitcoin layer-2s is over. The executive stated that a lot of jobs will disappear as their preliminary enjoyment fades.
On the other hand, Hu likewise informed Cointelegraph that a 3rd “overhyped” story was Bitcoin re-staking. He stated that at the minute, there are just 2 or 3 jobs still making it through after the peak of the story’s buzz stage in 2024.
While some hyped stories began to fade, Hu thinks there are lots of things to anticipate in the growing Bitcoin environment. The executive stated that while layer-2s are a fantastic narrative, they see it more as an engine that powers Bitcoin’s decentralized financing (DeFi) environment, which might permit holders to check out yield chances. Hu informed Cointelegraph:
” Bitcoin layer-2s are supplying architecture as a programmable, trust-minimized type of facilities that might offer yield for the Bitcoin whale holders or organizations. That’s a really essential story. I believe we’ll broaden a growing number of with the usage cases with adoption.”
Related: Bitcoin volatility strikes 3.6% in the middle of increased market unpredictability
Bitcoin DeFi is yet to remove
On The Other Hand, Dominik Harz, the co-founder of hybrid layer-2 Develop on Bitcoin (BOB), informed Cointelegraph that Bitcoin layer-2s must be viewed as a long-lasting play.
” Taking A Look At Bitcoin Layer-2s through a short-term lens misses out on the point. Buzz cycles reoccur, however lasting advancements in crypto, like Bitcoin itself, are naturally long-lasting plays,” Harz stated.
The executive likewise thinks that Bitcoin DeFi has actually not yet reached its complete capacity. “Bitcoin DeFi hasn’t even actually removed yet. We’re really early. Just 0.3% of Bitcoin’s market cap is active in DeFi today compared to 30% for Ethereum,” Harz informed Cointelegraph.
Harz mentioned this was a 100x disparity, stating it would reduce quickly as Bitcoin DeFi blows up. The executive likewise stated layer-2s are needed technological developments for Bitcoin DeFi to strike the marketplace.
Max Sanchez, the primary innovation officer of layer-2 procedure Hemi Labs, likewise thinks that Bitcoin layer-2s are not slowing.
He informed Cointelegraph that the area is getting in a maturation stage where principles matter. Sanchez stated that lots of early jobs in the Bitcoin layer-2 area brought innovation from Ethereum without adjusting it to Bitcoin’s special architecture “in a manner that really extends Bitcoin.”
Sanchez, who deals with a hybrid task linking to Ethereum, likewise stated that constructing a layer-2 in simply one silo and passing up interoperability with Ethereum-based procedures is a “incorrect concept.”
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