{"id":125539,"date":"2025-03-21T10:18:25","date_gmt":"2025-03-21T10:18:25","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125539"},"modified":"2025-03-21T10:18:25","modified_gmt":"2025-03-21T10:18:25","slug":"bitcoin-nfts-layer-2-and-restaking-hype-completely-gone","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125539","title":{"rendered":"Bitcoin NFTs, layer-2 and restaking hype \u2018completely gone\u2019"},"content":{"rendered":"

Source: Cointelegraph.com NewsA Bitcoin layer-2 executive explained how Bitcoin narratives that were \u201coverhyped\u201d have now wholly vanished while the ecosystem develops.\u00a0
\nIn a Cointelegraph interview, Bitlayer co-founder Charlie Hu laid out three Bitcoin narratives that he believed were overhyped. This included narratives that surrounded Ordinals, layer-2s and re-staking.\u00a0
\nAccording to Hu, one of the overhyped narratives in Bitcoin was non-fungible tokens (NFTs). The executive told Cointelegraph that while inscriptions may have gone \u201cto the moon,\u201d Hu said the era is \u201ccompletely gone.\u201d\u00a0
\nCryptoSlam data shows that in the first quarter of 2024, Bitcoin NFTs had a volume of $1.4 billion. In 2025 Q1, the volume is only at $280 million, showing an 80% drop. The executive believes that the 1,000x days of Bitcoin NFTs may be over and that people can\u2019t expect similar \u201ccrazy\u201d price performances anymore.
\nAre Bitcoin layer-2s running out of steam?\u00a0
\nApart from Bitcoin NFTs, Hu told Cointelegraph that the hype around Bitcoin layer-2 and Bitcoin re-staking has also declined among venture capitalists.\u00a0
\nHu told Cointelegraph that at least 80 layer-2 networks aimed to get funded at the beginning of 2024 when the layer-2 narrative was strong. The executive said many projects pitched their ideas to investors, the media and different communities. Hu said that while there was some hype, this was \u201cdefinitely over.\u201d\u00a0
\nMany other crypto executives and entrepreneurs resonate with Hu\u2019s point of view about the dying hype around layer-2 ecosystems. On Feb. 20, Stacks co-founder Muneeb Ali said the \u201choneymoon phase\u201d for Bitcoin layer-2s is over. The executive said that most projects will cease to exist as their initial excitement fades.
\nMeanwhile, Hu also told Cointelegraph that a third \u201coverhyped\u201d narrative was Bitcoin re-staking. Hu told Cointelegraph that at the moment, there are only 2 to 3 projects still surviving after the peak of the narrative\u2019s hype phase in 2024.\u00a0
\nWhile some hyped narratives started to fade, Hu believes there are many things to look forward to in the growing Bitcoin ecosystem. The executive said that while layer-2s are a great narrative, they see it more as an engine that powers Bitcoin\u2019s decentralized finance (DeFi) ecosystem, which could allow holders to explore yield opportunities. Hu told Cointelegraph:\u00a0
\n\u201cBitcoin layer-2s are providing architecture as a programmable, trust-minimized kind of infrastructure that could provide yield for the Bitcoin whale holders or institutions. That\u2019s a very important narrative. I think we\u2019ll expand more and more with the use cases with adoption.\u201d
\nRelated: Bitcoin volatility hits 3.6% amid heightened market uncertainty
\nBitcoin DeFi is yet to take off
\nMeanwhile, Dominik Harz, the co-founder of hybrid layer-2 Build on Bitcoin (BOB), told Cointelegraph that Bitcoin layer-2s should be seen as a long-term play.\u00a0
\n\u201cLooking at Bitcoin Layer-2s through a short-term lens misses the point. Hype cycles come and go, but lasting developments in crypto, like Bitcoin itself, are inherently long-term plays,\u201d Harz said.\u00a0
\nThe executive also believes that Bitcoin DeFi has not yet reached its full potential. \u201cBitcoin DeFi hasn\u2019t even really taken off yet. We\u2019re very early. Only 0.3% of Bitcoin\u2019s market cap is active in DeFi right now compared to 30% for Ethereum,\u201d Harz told Cointelegraph.\u00a0
\nHarz pointed out this was a 100x discrepancy, saying it would decrease rapidly as Bitcoin DeFi explodes. The executive also said layer-2s are necessary technological advancements for Bitcoin DeFi to hit the market.\u00a0
\nMax Sanchez, the chief technology officer of layer-2 protocol Hemi Labs, also believes that Bitcoin layer-2s are not losing steam.\u00a0
\nThe executive told Cointelegraph that the space is entering a maturation phase where fundamentals matter. Sanchez said that many early projects in the Bitcoin layer-2 space brought technology from Ethereum without adapting it to Bitcoin’s unique architecture \u201cin a way that truly extends Bitcoin.\u201d
\nSanchez, who works on a hybrid project connecting to Ethereum, also said that building a layer-2 in just one silo and forgoing interoperability with Ethereum-based protocols is a \u201cfalse notion.\u201d\u00a0
\nMagazine: Memecoins are ded \u2014 But Solana \u2018100x better\u2019 despite revenue plungeRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsA Bitcoin layer-2 executive explained how Bitcoin narratives that were \u201coverhyped\u201d have now wholly vanished while the ecosystem develops.\u00a0 In a Cointelegraph interview, Bitlayer co-founder Charlie Hu laid… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125539"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125539"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125539\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125539"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}