Muneeb Ali Predicts Two-Thirds of Bitcoin L2 Projects Will Disappear
Muneeb Ali, co-founder of Stacks, predicts that over two-thirds of current Bitcoin layer-2 (L2) projects will disappear in the next three years as initial hype fades.
Key points from Ali's interview at Consensus 2025 include:
- The "honeymoon phase" for Bitcoin L2s is ending.
- Stacks recently completed a major upgrade, Nakamoto, improving user experience.
- Stacks is now secured by 100% of Bitcoin hash rate, enabling faster confirmations.
- Many Bitcoin projects lack sustained commitment and focus.
- Ali estimates less than one-third of Bitcoin projects will survive.
- He believes Stacks and Babylon will continue to thrive.
- Stacks is viewed as a blue-chip project amid a suppressed market.
Regarding investments, Ali anticipates a shift toward Bitcoin (BTC) as other layer-1 chains like Ethereum and Solana decline. He emphasized:
- Bitcoin attracts significant capital inflows, including from spot Bitcoin ETFs.
- Competing projects are vying for limited capital within the industry.
- Unlike other assets, Bitcoin has net new buyers.
Ali expressed strong confidence in BTC, predicting its price will not fall below $50,000 due to historical data attracting large hedge funds and creating a self-fulfilling prophecy.