Key Takeaways:
- Most Bitcoin Layer-2 projects won’t survive the next three years, warns Muneeb Ali.
- Bitcoin is pulling in new money from institutions, while Ethereum and Solana rely on recycled funds.
- Stacks’ Nakamoto upgrade enhances security and transaction speed.
- Ali believes Bitcoin will never drop below $50K due to long-term investor confidence.
Not all Bitcoin Layer-2 (L2) projects will make it—most of them won’t, says Stacks co-founder Muneeb Ali.
At Consensus 2025, Ali didn’t sugarcoat things: The L2 “honeymoon phase” is over. While many projects rode the initial wave of excitement, the reality is the market is tough, and only a handful will survive.
Breaking news!! 📰
— Arthur Strong (@ArthurStrongBTC) February 20, 2025
Bitcoin L2 ‘honeymoon phase’ is over, most projects will fail — Muneeb Ali
Muneeb Ali, co-founder of Stacks, pointed out that over two-thirds of current Bitcoin layer 2 projects could cease to exist in three years as the initial excitement fades. During an…
“Building on hype isn’t enough,” Ali explained. “My guess? Less than a third of all Bitcoin L2s will still be around in three years.”
Stacks, however, is one of the few strong players left standing. With its latest Nakamoto upgrade, Stacks now benefits from 100% of Bitcoin’s hash power, making transactions faster without compromising security.
Bitcoin Is Winning the Long Game
Ali is also confident that Bitcoin is outpacing Ethereum and Solana. The reason? Fresh capital.
“Bitcoin attracts new money—from ETFs, hedge funds, and institutional investors,” he said. “Other projects are just moving the same money around.”
He compared it to meme coins: when they’re hot, funds flow away from infrastructure projects—but it’s still the same capital being shuffled around. Bitcoin, on the other hand, keeps bringing in new buyers.
Ali’s Bold Call: BTC Won’t Drop Below $50K Again
Despite Bitcoin’s price swings, Ali firmly believes that BTC will never fall below $50,000 again.
Why? Historical trends and investor behavior. He pointed out that hedge funds rely on decade-long price data and halving cycles to make their bets. This reinforces Bitcoin’s price floor, almost like a self-fulfilling prophecy.
A primer on Stacks & Stacking 🟧
— stacks.btc (@Stacks) May 22, 2024
For that one friend who does not know about Stacks 👇
Stacks Creator Muneeb Ali shares a 90 seconds summary of Stacks and Stacking STX. pic.twitter.com/RGsZq5mcBx
“Looking at the past 10 years, it’s clear,” he said. “Bitcoin isn’t going anywhere—its floor keeps rising.”
What’s Next for Bitcoin L2s?
The hype is fading, but that doesn’t mean Bitcoin Layer-2s are dead. The strong ones—like Stacks and Babylon—will continue building, while weaker projects will likely disappear.
Bitcoin L2s are a critical component for Bitcoin's mainstream adoption 🟧
— stacks.btc (@Stacks) July 25, 2024
– Muneeb Ali, Co-Creator of Stacks pic.twitter.com/uIVEjAs878
At the same time, Bitcoin itself is only getting stronger. With institutional investors pouring in, Ali’s vision of Bitcoin as the world’s top financial asset may be closer than ever.
