Stacks co-founder and CEO Muneeb Ali stated in an interview with Cointelegraph that most second-layer projects based on the leading cryptocurrency will disappear within three years.
According to him, the market is evolving under fierce competition, and enthusiasm around L2 solutions has significantly waned.
“The honeymoon is over […]. About two-thirds of projects will not survive this period,” Ali stated.
However, he emphasized that platforms like Stacks and Babylon will continue to develop.
Stacks, initially launched as Blockstack in 2013, conducted a network upgrade called Nakamoto last summer. This improved user experience and provided the platform with 100% of Bitcoin’s hash rate, Ali explained.
The expert stated that he expects the market to shift towards the leading cryptocurrency as other first-layer blockchains (L1), such as Ethereum and Solana, “are in decline.”
Ali noted that Bitcoin is receiving an influx of external capital, for instance, through spot BTC-ETFs. Meanwhile, many other projects are competing for limited resources within the industry.
As an example, the Stacks co-founder mentioned the increased interest in meme coins, which “drain” capital from infrastructural L1 projects. At the same time, Bitcoin remains the only asset with a constant influx of new buyers.
Ali is confident that this type of stability, supported by data over the past 10 years, makes digital gold attractive to large investors and hedge funds. He also stated that Bitcoin’s price will never fall below $50,000 again.
Earlier, analysts at Galaxy Digital predicted a liquidity shift into Bitcoin L2 solutions—over $47 billion by 2030.