A Bitcoin Layer-2 executive explained how Bitcoin’s “overhyped” narratives disappeared as the ecosystem develops.
In an interview with cointelegraph, bitlayer co-founder Charlie Hu laid out three Bitcoin accounts that he believed was extreme. This includes narratives surrounding the ordinal, layer-2s and staking.
According to HU, one of the overhyped narratives in Bitcoin is not tokens (NFT). The executive told Cointelegraph that while the inscriptions could leave “the moon,” Hu said the weather was “completely gone.”
Cryptoslam data Shut up That in the first quarter of 2024, the Bitcoin NFTS has a volume of $ 1.4 billion. At 2025 Q1, the volume was just $ 280 million, showing an 80% collapse. The executive believes that 1,000x day of Bitcoin NFTS can finish and that people cannot expect similar “crazy” price presentations.
Is Bitcoin Layer-2S run out of steam?
Aside from the Bitcoin NFTS, HU told cointelegraph that the hype around the Bitcoin Layer-2 and Bitcoin re-staking also refused venture capitalists.
HU told Cointelegraph that at least 80 Layer-2 networks aimed at funding at the beginning of 2024 with the Layer-2 narrative aloud. The executive said many projects have built their ideas on investors, media and various communities. Hu said that while there is some hype, it is “definitely.”
Many other crypto executives and entrepreneurs reflect Hu’s point of view of the dying hype around layer-2 ecosystems. In Feb. The Executive said that most projects are Ceased to exist As their initial excitement is missing.
Hu, meanwhile, also told Cointelegraph that a third “overhyped” narrative was a bitcoin stake. HU told Cointelegraph that today, there are only 2 to 3 projects that have survived after the peak of the Phase of the Story in 2024.
While some hyped narratives began to fade, Hu believes there are many things to be expected of the growing Bitcoin ecosystem. The Executive said that while Layer-2 is a great narrative, they see it as a machine that activates the decentralized ecosystem of Bitcoin (DEFI) ecosystem, which may allow holders to explore yield opportunities. Hu said to cointelegraph:
“The Bitcoin Layer-2S provides architecture as a programmable, confident minimized type of infrastructure that can provide yield for whale or institutions.
Related: Bitcoin’s volatility hits 3.6% amid the increased uncertainty in the market
Bitcoin Defi has not been removed
Meanwhile, Dominik Harz, co-founder of the Hybrid Layer-2 building in Bitcoin (Bob), told Cointelegraph that Bitcoin’s layers-2s should be seen as a long-term play.
“Looking at Bitcoin’s layers-2 through a short-term lens loses the point. Hype cycles are coming and go, but long-term crypto development, like Bitcoin itself, is naturally long-term play,” Harz said.
The executive also believes that Bitcoin Defi has not yet reached its full potential. “The Bitcoin Defi hasn’t really taken it. We’re still early. Only 0.3% of the Bitcoin market cap is active in DeFI today compared to 30% for Ethereum,” Harz told Cointelegraph.
Harz pointed out that this was a difference of 100x, saying it was coming down quickly as the bitcoin defi exploded. The Executive also said the layer-2s were required technological advances for the bitcoin defi to hit the market.
Max Sanchez, the Chief Technology Officer of the Layer-2 Protocol Hemi Labs, also believes that the Bitcoin Layer-2S is not losing steam.
The executive in cointelegraph said the space enters a stage of maturation where the basics are important. Sanchez said many early projects in the Layer-2 space of Bitcoin brought technology from Ethereum without adapting it to the unique bitcoin architecture “in a way that truly expands Bitcoin.”
Sanchez, who works on a hybrid project that connects Ethereum, also said that the development of a layer-2 to a snare and outgoing interoperability in Ethereum-based protocols is a “false notion.”
https://www.youtube.com/watch?v=FWO0hw_94a4
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