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An executive of bitcoin layer 2 explained how bitcoin's narratives that were “overvalued” have now disappeared completely while developing the ecosystem.
In an interview by Cointegraph, Bitlayer's co -founder, Charlie Hu, presented three bitcoin narratives who believed they were overvalued. This included narratives surrounding the ordinary ones, layer 2 and the re-ascense.
According to Hu, one of the overvalued stories in bitcoin was a non -fungible figure (nft). The executive told Cointelegraph that, although the inscriptions may have gone “to the moon,” Hu said that the time “has gone completely.”
Cryptoslam data <a target="_blank" data-ct-non-breakable="null" href="https://www.cryptoslam.io/blockchains/bitcoin?headerPeriod=30d&timeFrame=month” rel=”null” target=”null” text=”null” title=”null”>shows That in the first quarter of 2024, bitcoin nfts had a volume of $ 1.4 billion. In 2025 Q1, the volume is only $ 280 million, which shows an 80%drop. The Executive believes that the 1,000x days of bitcoin nft can end and that people can no longer expect “crazy” similar prices.
The bitcoin are running out of steam?
In addition to bitcoin nfts, Hu told Cointelegraph that the exaggeration of bitcoin Layer-2 and bitcoin Re-Staking has also decreased among risk capitalists.
Hu told Coinlegraph that at least 80 layer 2 networks were aimed at being financed at the beginning of 2024 when the narrative of layer 2 was strong. The executive said that many projects presented their ideas to investors, the media and the different communities. Hu said that while there was some hype, this “is definitely over.”
Many other executives and cryptographic entrepreneurs resonate with the point of view of the dying exaggeration around the ecosystems of layer 2. On February 20, the stack co -founder, Muneeb Ali, said that the “honeymoon phase” for layer 2 of bitcoin is over. The executive said that most projects will cease to exist as their initial emotion fades.
Meanwhile, Hu also told Coinlegraph that a third “overvalued” narrative was bitcoin's reactivated. He said that at this time, there are only two or three projects that still survive after the pump peak of the narrative in 2024.
While some published narratives began to fade, Hu believes that there are many things to wait in the growing bitcoin ecosystem. The executive said that while layers 2 are a great narrative, they see it more as an engine that feeds the decentralized finance ecosystem (DEFI) of bitcoin, which could allow holders to explore performance opportunities. Hu told Cointegraph:
“bitcoin layers are providing architecture as a type of programmable and minimized trusted infrastructure that could provide performance for bitcoin whales or institutions. That is a very important narrative. I think we will expand more and more with adoption cases.”
Related: bitcoin's volatility hits 3.6% in the midst of greater market uncertainty
bitcoin Defi has not yet taken off
Meanwhile, Dominik Harz, co-founder of the hybrid layer built in bitcoin (Bob), told Cointelegraph that bitcoin Layer-2s should be seen as a long-term play.
“Looking at bitcoin's layer through a short -term lens loses the point. The exaggeration cycles come and go, but durable developments in cryptography, such as bitcoin itself, are inherently inherently long -term plays,” said Harz.
The executive also believes that bitcoin Defi has not yet achieved its maximum potential. “bitcoin Defi has not even taken off. We have very early. Only 0.3% of bitcoin's market capitalization is active in Defi at this time compared to 30% for ethereum,” Harz told Cointelegraph.
Harz said that this was a discrepancy of 100x, saying that it would decrease rapidly as bitcoin defi explodes. The Executive also said that layers 2 are the necessary technological advances for bitcoin Defi to reach the market.
Max Sánchez, director of technology of the 2 HEMI Labs layer protocol, also believes that bitcoin Layer-2 is not losing steam.
He told Cointegraph that space is entering a maturation phase where the foundations matter. Sanchez said that many early projects in the space of bitcoin layer 2 brought ethereum technology without adapting it to bitcoin's unique architecture “in a way that bitcoin extends.”
Sánchez, who works in a hybrid project that connects with ethereum, also said that building a layer 2 in a single silo and the interoperability planned with ethereum -based protocols is a “false notion.”
https://www.youtube.com/watch?v=fwo0hw_94a4
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