A Bitcoin layer-2 executive explained how Bitcoin narratives that were “overhyped” have now wholly vanished while the ecosystem develops.
In a Cointelegraph interview, Bitlayer co-founder Charlie Hu laid out three Bitcoin narratives that he believed were overhyped. This included narratives that surrounded Ordinals, layer-2s and re-staking.
According to Hu, one of the overhyped narratives in Bitcoin was non-fungible tokens (NFTs). The executive told Cointelegraph that while inscriptions may have gone “to the moon,” Hu said the era is “completely gone.”
CryptoSlam data shows that in the first quarter of 2024, Bitcoin NFTs had a volume of $1.4 billion. In 2025 Q1, the volume is only at $280 million, showing an 80% drop. The executive believes that the 1,000x days of Bitcoin NFTs may be over and that people can’t expect similar “crazy” price performances anymore.
Are Bitcoin layer-2s running out of steam?
Apart from Bitcoin NFTs, Hu told Cointelegraph that the hype around Bitcoin layer-2 and Bitcoin re-staking has also declined among venture capitalists.
Hu told Cointelegraph that at least 80 layer-2 networks aimed to get funded at the beginning of 2024 when the layer-2 narrative was strong. The executive said many projects pitched their ideas to investors, the media and different communities. Hu said that while there was some hype, this was “definitely over.”
Many other crypto executives and entrepreneurs resonate with Hu’s point of view about the dying hype around layer-2 ecosystems. On Feb. 20, Stacks co-founder Muneeb Ali said the “honeymoon phase” for Bitcoin layer-2s is over. The executive said that most projects will cease to exist as their initial excitement fades.
Meanwhile, Hu also told Cointelegraph that a third “overhyped” narrative was Bitcoin re-staking. Hu told Cointelegraph that at the moment, there are only 2 to 3 projects still surviving after the peak of the narrative’s hype phase in 2024.
While some hyped narratives started to fade, Hu believes there are…
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