In a recent interview, Bitlayer co-founder Charlie Hu discussed the decline of Bitcoin narratives that were once considered overhyped, particularly around non-fungible tokens (NFTs), layer-2s, and re-staking. Hu indicated that Bitcoin NFTs, which had a strong volume of $1.4 billion in Q1 2024, have experienced an 80% drop to only $280 million in Q1 2025, suggesting the peak growth days are over. Similarly, interest around Bitcoin layer-2 networks and re-staking has diminished, with many projects seeing reduced venture capital interest after an initial spike. Other executives echoed Hu's sentiments, noting that the initial excitement for Bitcoin DeFi and layer-2 advancements was fading, with significant room for growth still present. They believe that while the hype might be waning, there are essential long-term developments occurring within the Bitcoin ecosystem, as layer-2s are viewed as vital infrastructure for the future of Bitcoin's decentralized finance capabilities.

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