TechFlow news, March 21 — According to Cointelegraph, once-hyped narratives in the Bitcoin ecosystem such as NFTs, Layer 2 networks, and restaking are gradually losing momentum. Industry experts attribute this decline to the fading of excessive speculation and a shift in focus toward sustainable growth. Charlie Hu, co-founder of Bitcoin Layer 2 network Bitlayer, said that previously "overhyped" narratives within the Bitcoin ecosystem have now completely disappeared, including the frenzies surrounding Ordinals, Layer 2s, and restaking.
Hu pointed out that Bitcoin NFTs were one of the overhyped narratives. While inscriptions once "shot to the moon," that era has now "entirely passed." Data shows that Bitcoin NFT trading volume reached $1.4 billion in the first quarter of 2024, but dropped to just $280 million in the first quarter of 2025—a decline of 80%. Hu believes the era of "1,000x growth" for Bitcoin NFTs may be over, and people can no longer expect similarly "crazy" price performances.
Besides NFTs, Hu noted that venture capitalists' enthusiasm for Bitcoin Layer 2 networks and restaking is also waning. He revealed that at the beginning of 2024, when the Layer 2 narrative was strong, there were at least 80 Layer 2 projects seeking funding. Many teams pitched their ideas to investors, media, and various communities, but this boom has "definitely ended." Other crypto executives share Hu’s view. Muneeb Ali, co-founder of Stacks, previously stated that the "honeymoon period" for Bitcoin Layer 2s is over, and most projects will disappear as initial excitement fades.
Hu also mentioned that Bitcoin restaking is the third "overhyped" narrative. Currently, only two to three projects remain active after the peak hype of 2024. Despite the fading of some speculative narratives, Hu believes there are still many promising aspects to look forward to in the Bitcoin ecosystem. He said Layer 2s represent a compelling narrative, viewing them more as engines driving Bitcoin's decentralized finance (DeFi) ecosystem, enabling holders to explore yield-generating opportunities.
