How Stacks is Shaping the Future of Bitcoin Layer-2 Solutions

Fri Feb 21 2025
According to Muneeb Ali, many Bitcoin layer-2 projects are unlikely to survive the next three years, with more resilient platforms like Stacks taking the lead. Meanwhile, Bitcoin continues to attract new investments and maintains its dominant position, confirming its long-term appeal to large investors.

🔮 Muneeb Ali Predicts a Major Shakeout in Bitcoin’s Layer 2 Ecosystem

Muneeb Ali, co-founder and CEO of Stacks, has a bold prediction: most Bitcoin Layer 2 (L2) projects won’t survive the next three years. In a recent Cointelegraph interview, he explained why the hype is fading and only a few platforms—like Stacks and Babylon—will emerge stronger.


📉 The End of the Bitcoin L2 "Honeymoon Phase"

Ali believes the initial excitement around Bitcoin L2s is wearing off, and many projects are struggling to stay relevant. His key points:

  • Expect a massive shakeout—up to two-thirds of Bitcoin L2s could disappear.
  • Hype-driven projects will collapse, leaving only those with real innovation and adoption.
  • Stacks and Babylon stand out as platforms with long-term vision and staying power.

⚡ Why Stacks is Built to Last

Stacks is one of Bitcoin’s oldest and most established Layer 2 solutions. With its recent Nakamoto upgrade, the platform is now:

Fully secured by 100% of Bitcoin’s hash rate for unmatched security
Faster and more user-friendly, improving transaction speeds
A leading Bitcoin L2, while competitors struggle to keep up

Ali argues that Stacks is now positioned as the go-to Bitcoin L2, benefiting directly from Bitcoin’s growing dominance.


🏆 Bitcoin’s Growing Lead Over Ethereum & Solana

Ali believes the market is shifting away from Ethereum and Solana and back toward Bitcoin as the primary crypto investment. Reasons why:

💰 Bitcoin ETFs are bringing in traditional investors
📈 Bitcoin continues to attract new buyers, unlike altcoins
🚀 Bitcoin’s dominance is increasing, while other Layer 1 chains struggle

Ali sees Bitcoin as the safest bet in crypto, with permanent demand and increasing institutional adoption.


🐶 The Meme Coin Distraction

Ali also pointed out how meme coins are pulling capital away from serious blockchain projects. However, he notes:

  • Meme coin money isn’t new investment—it’s just capital rotating within crypto.
  • Bitcoin is the only asset consistently attracting fresh buyers, reinforcing its stability.

🔥 Bitcoin’s Future: $50K Floor & Long-Term Strength

Ali is confident Bitcoin’s price will never drop below $50,000 again. His reasoning?

📊 Bitcoin’s historical resilience
⛏️ The Bitcoin halving cycle drives long-term growth
🏦 Institutional investors (hedge funds, ETFs) are adding buying pressure

As Bitcoin’s influence grows, Stacks is in prime position to benefit from its expanding ecosystem.


🚀 TL;DR

  • Muneeb Ali predicts most Bitcoin Layer 2 projects will fail within three years.
  • Stacks and Babylon are among the few that will survive, thanks to strong fundamentals.
  • Bitcoin is pulling ahead of Ethereum and Solana, attracting institutional money.
  • Meme coins are shifting funds around but not bringing in new investors.
  • Bitcoin’s price floor is likely $50K, with continued long-term growth.

💡 Bottom line: The Bitcoin ecosystem is consolidating, and Stacks is emerging as the strongest L2 in the space.

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