As 2024 draws to a close, the crypto community reflects on two pivotal metrics: investment ROI against market benchmarks (BTC surged 130% this year) and the evolution of their chosen niches. While Solana, Base, TON, and AI Agent ecosystems celebrated milestones, Bitcoin's ecosystem—despite infrastructural progress—fell short of its early-year promise.
Some label 2024 a "failure" for Bitcoin's muted growth; others maintain unwavering faith. As a steadfast participant, I term this chapter a "regret."
A Promising Dawn: Bitcoin Ecosystem in Early 2024
Optimism for Bitcoin’s ecosystem was palpable in early 2024, with expectations of a breakout year akin to current 2025 projections for AI Agents. This enthusiasm stemmed from three key developments:
Layer-1 Asset Protocols:
- BRC-20 tokens (ORDI, SATS) gained traction post-Binance listings, reigniting the inscription frenzy across chains.
- Emerging protocols like ARC-20 and SRC-20 surged alongside innovative airdrop campaigns for Runes (launched April 2024).
Bitcoin L2 Explosion:
- Over 100 L2 projects emerged, fueled by VC backing and ambitions to mirror Ethereum’s L2 success.
- Demand grew for scalability as Bitcoin’s congestion and asset utility issues intensified.
Bitcoin Staking Narrative:
- Babylon’s $18M funding round in December 2023 kickstarted BTC staking/restaking, drawing parallels to EigenLayer’s Ethereum model.
Infrastructure matured rapidly, with Unisat and OKX Wallet supporting multi-asset protocols. The January 2024 approval of Bitcoin ETFs further bolstered confidence, signaling institutional adoption and a potential trillion-dollar ecosystem.
👉 Explore Bitcoin’s evolving infrastructure
The Unraveling: Why 2024 Fell Short
Layer-1 Assets: Fizzling Momentum
- Runes’ Short-Lived Hype: Post-launch fees spiked to 2,000+ sat/vB, but interest waned within weeks. Despite brief $2B valuation peaks, liquidity stagnated.
- BRC-20’s Decline: ORDI dropped 70% from highs; newer assets (e.g., PIZZA, CAT 20) failed to sustain FOMO due to fragmented global communities and exhausted narratives.
Bitcoin L2s: Survival of the Fittest
- Casey’s Critique: Ordinals founder dismissed most L2s as "unsubstantiated," citing only Lightning Network’s viability.
- TVL Wars & Collapse: Merlin Chain’s $3B TVL victory collapsed post-MERL token launch (-85%). DefiLlama reports just 19 surviving L2s ($2.8B TVL vs. Arbitrum’s $3B alone).
- Innovation Deficit: Early EVM clones faced criticism for lacking Bitcoin-native solutions.
BTC Staking’s Identity Crisis
- Babylon’s Struggle: Despite 57K BTC locked ($5.6B TVL), adoption pales next to EigenLayer ($15.7B). Institutional preference for ETFs over DeFi staking revealed a market mismatch.
- Risky Restaking Models: Platforms like Lombard and Solv Protocol dominate Babylon’s质押量,但潜在的流动性风险和托管漏洞（e.g., Bedrock’s $2M hack）deterred trust.
2025: A Turnaround Year?
This analysis isn’t a eulogy—it’s a candid acknowledgment of unmet potential. ORDI, DOG, and PUPS communities persist; Unisat/OKX refine infrastructure; OP_CAT innovations loom, and Babylon’s 2025 TGE could reignite momentum.
FAQ
Q: Did Runes protocol fail in 2024?
A: Not entirely. It peaked early but lacked sustained liquidity due to speculative fatigue and community fragmentation.
Q: Are Bitcoin L2s still viable?
A: The surviving 20% (e.g., Merlin, Bitlayer) focus on native solutions, but mass adoption requires deeper technical integration.
Q: Why isn’t BTC staking booming like ETH?
A: Bitcoin’s "digital gold" ethos contrasts with Ethereum’s programmable asset nature, making institutions prefer ETFs over DeFi.
👉 Stay updated on Bitcoin’s 2025 roadmap
I remain bullish—Bitcoin’s ecosystem will likely define this cycle’s crescendo. What’s your keyword for 2024?
Originally published on Odaily. Author: Golem. Adapted by 36Kr with permission.
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1. **Keywords**: Bitcoin ecosystem, Runes protocol, Bitcoin L2, BTC staking, BRC-20, Ordinals, Layer-2 solutions.
2. **Engagement**: Anchor texts and FAQs address reader queries while boosting dwell time.