Stacks CEO predicts Bitcoin L2s will face tough road
Muneeb Ali, co-founder of Stacks (CRYPTO:STX), stated that over two-thirds of current Bitcoin (CRYPTO:BTC) layer-2 (L2) projects are likely to disappear within three years.
According to Ali, the initial excitement is fading, and many ventures lack the mission or long-term dedication needed to survive.
Ali shared his insights during an interview at Consensus 2025.
He observed that the "honeymoon phase" for Bitcoin L2s is ending, with the market proving to be very challenging.
Ali estimates that less than one-third of all Bitcoin projects will remain active.
He highlighted that projects adapting to the harsh realities, such as Stacks and Babylon, would continue to build and thrive in this market.
Stacks recently underwent a significant network upgrade called Nakamoto, enhancing user experience and security by being fully backed by Bitcoin’s hash rate.
This performance has helped Stacks secure a reputation as a blue chip project.
Ali also expressed confidence in Bitcoin’s strength and its ability to attract new capital from outside the industry, including inflows from spot Bitcoin ETFs.
He suggested that while other layer-1 chains like Ethereum (CRYPTO:ETH) and Solana (CRYPTO:SOL) may decline, Bitcoin is poised to capture new buyers and maintain its market dominance.
Furthermore, Galaxy Research anticipates a significant migration of $47 billion towards these infrastructures by 2030.
Since 2021, the number of Bitcoin L2 projects has increased from 10 to 75.
The second quarter of 2024 saw Bitcoin L2s capture 44% of all crypto VC capital invested in L2 solutions across the industry, marking a 159% increase.
At the time of reporting, the Bitcoin (BTC) price was $98,264.33.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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