The crypto world is rapidly changing, with once-hyped concepts quickly fading away. This is true for Bitcoin-based NFTs and layer 2 projects, which appear to be losing relevance.
Faded Hope: Bitcoin's NFTs and Layer 2
In 2024, the trading volume of Bitcoin-based NFTs hit $1.4 billion, but by 2025, it had fallen 80% to $280 million. Similar fate befell layer 2 projects, which numbered over 80 at the start of 2024 but dwindled to a handful within half a year. Charlie Hu, a Bitlayer co-founder, noted that these projects were overestimated from the start.
Bitcoin DeFi: Untapped Potential
Unlike the faded projects, Bitcoin-based DeFi continues to develop. Currently, only 0.3% of Bitcoin's market cap is used for DeFi, compared to Ethereum's 30%. With technologies like zkBTC, transactions are becoming faster and cheaper, paving new ways for development.
Bitcoin vs Ethereum: Two Visions of Decentralized Finance
The rivalry between Bitcoin and Ethereum continues. While Ethereum prepares its major update "Hoodi", Bitcoin is advancing its technical layers. Maxwell Sanchez of Hemi Labs emphasizes the need for Bitcoin to adapt technologies without copying Ethereum's solutions.
The future of the crypto market remains uncertain, and only time will tell which platform can gain the trust and attention of developers, users, and investors.
