Bitcoin L2 Hype Fades as Most Projects Face Collapse

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Stacks’ Muneeb Ali warned that most Bitcoin L2 projects will fade away within three years even as Bitcoin gains dominance over Ethereum and Solana.

More than two-thirds of the existing Bitcoin layer-2 projects will cease to exist within three years as their initial excitement fades, said Muneeb Ali, co-founder of Stacks.

“The honeymoon phase [for Bitcoin L2s] is a little bit over,” Ali said in an interview with Cointelegraph at Consensus 2025, while sharing updates on Stacks — a Bitcoin L2 originally launched as Blockstack in 2013. 


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