Key Points
- Muneeb Ali, co-founder of Stacks, predicts a decline in Bitcoin layer-2 (L2) projects over the next three years.
- Ali also forecasts a market shift favoring Bitcoin as leading layer-1 chains like Ethereum and Solana experience a decline.
Muneeb Ali, co-founder of Stacks, anticipates that the majority of existing Bitcoin L2 projects will disappear within the next three years.
The initial enthusiasm surrounding these projects is expected to fade.
Bitcoin L2 Projects: The Future
Ali made these statements during an interview at the Consensus 2025 event.
He shared updates on Stacks, a Bitcoin L2 project that was initially launched as Blockstack in 2013.
Recently, Stacks underwent a significant upgrade, Nakamoto, which greatly improved the user experience.
Ali mentioned that Stacks is now secured by 100% of Bitcoin hash, which means users will experience faster confirmations on Bitcoin L2, backed by the inherent security of the Bitcoin mainnet.
He also commented on the Bitcoin L2 ecosystem, noting that many projects are beginning to realize the market’s difficulty.
Survival of the Fittest
Ali noticed that many Bitcoin projects lack the commitment to sustain development beyond the initial excitement.
He expressed confidence in a select few projects, including Stacks and Babylon, which he believes will continue to build and thrive in the challenging market landscape.
Ali also noted that investors tend to favor blue-chip projects that could last for at least five years and beyond.
Ali predicts a market shift favoring Bitcoin (BTC) as leading layer-1 chains like Ethereum and Solana experience a decline.
He highlighted Bitcoin’s advantage in attracting external capital inflows, such as those from spot Bitcoin exchange-traded funds (ETFs).
Ali expressed strong confidence in Bitcoin, predicting that BTC’s price will never drop below $50,000.
He attributed this to a decade of historical data that is likely to attract large hedge funds, which will follow established models and halving patterns.
