Close Menu
Crypto Junction
  • Crypto News
    • News
    • Bitcoin
    • Blockchain
    • BNB
    • Dogecoin
    • Ethereum
    • Litecoin
    • Meme Coins
    • Solana
    • Toncoin
    • XRP
  • Business
  • Markets
  • Regulation
  • Guides
  • Press Release
What's Hot

EVAA: TON’s $1.4B DeFi Protocol Becomes Community-Owned DAO With $EVAA Token

October 15, 2025

Pardon for Binance CEO CZ? Trump’s Move Stuns Markets

October 14, 2025

China Tariff News Triggers Crypto Crash — Bitcoin Hits $102K!

October 14, 2025
Facebook X (Twitter) Instagram
  • Altcoin News
  • Bitcoin News
  • Dogecoin News
  • Ethereum News
  • Litecoin News
  • Meme Coin News
  • Solana News
  • XRP News
X (Twitter) Telegram
Crypto JunctionCrypto Junction
  • Crypto News
    • News
    • Bitcoin
    • Blockchain
    • BNB
    • Dogecoin
    • Ethereum
    • Litecoin
    • Meme Coins
    • Solana
    • Toncoin
    • XRP
  • Business
  • Markets
  • Regulation
  • Guides
  • Press Release
Crypto Junction
Home » The End of Altcoins? How Layer 2s Are Changing the Crypto Landscape
Altcoins

The End of Altcoins? How Layer 2s Are Changing the Crypto Landscape

Karly MarieBy Karly MarieSeptember 15, 2021Updated:March 13, 20253 Mins Read
Share Facebook Twitter Pinterest Reddit Telegram Email Bluesky Copy Link
Share
Twitter Facebook Telegram Bluesky Pinterest Email Reddit Copy Link

Over the past decade, Bitcoin has solidified its role as a monetary premium asset—a hedge against inflation that is now being adopted by institutional investors. However, the next phase in its journey is taking shape, one that threatens the very foundation of altcoins: the rise of Layer 2 solutions.

Layer 2 technologies are scaling solutions that improve the functionality of blockchain networks without altering their base layer. Instead of relying on new altcoin ecosystems, Bitcoin and Ethereum are evolving beyond their original chains, potentially rendering chain-specific altcoins obsolete.

Ethereum’s Struggles and the Shift to Layer 2

Ethereum, often seen as the only legitimate competitor to Bitcoin, has been the foundation of Decentralized Finance (DeFi) and smart contract applications. However, the network faces critical challenges:

High Gas Fees – Transactions have become prohibitively expensive.
Slow Speeds – Network congestion leads to delays.
Ethereum 2.0 Delays – The much-anticipated upgrade has been frustratingly slow.

To address these issues, Ethereum developers turned to Layer 2 solutions, such as Optimistic Rollups and ZK-Rollups, which allow transactions to occur off-chain while only periodically settling on Ethereum.

But this shift undermines the very justification for ETH’s value. If transactions and smart contracts can function independently of Ethereum’s base layer, does ETH still hold significance?

See also  China’s ICO Ban: A Crackdown or a Catalyst for Innovation?

Bitcoin and the End of Chain-Specific Altcoins

Bitcoin, once limited to a simple transactional currency, has evolved to support DeFi applications through Lightning Network and sidechains like RSK.

Additionally, blockchain bridges—such as Polkadot, Cosmos, and NEAR—are enabling cross-chain communication, allowing assets like Bitcoin and stablecoins to move freely across ecosystems.

This shift challenges the need for altcoins, as liquidity and monetary value begin consolidating around Bitcoin and stablecoins instead of fragmented Layer 1 chains.

Why Altcoins (Including ETH) Are Losing Their Purpose

The traditional value proposition of altcoins relied on their native chains offering unique technological advantages. However, as Layer 2 solutions gain prominence, several key trends emerge:

The Network Effect Moves to Assets, Not Chains – Bitcoin and stablecoins like USDT and USDC are becoming the dominant value carriers, rather than the blockchains they exist on.

Ethereum’s Primacy Is at Risk – With Bitcoin and stablecoins moving seamlessly across chains, Ethereum’s dominance in DeFi is under threat.

Fragmentation Weakens Altcoins – The proliferation of Layer 2 solutions means there’s no longer a single dominant smart contract platform, leading to market dilution.

See also  80% of Memecoins Surged After Binance Listing in 2024, Neiro Gained 7,600%

DeFi No Longer Needs ETH – With rollups and interchain bridges, DeFi projects can function without relying on ETH, undermining its role as a necessary asset.

The Future: A Bitcoin-Stablecoin Dominated World?

Looking ahead, a major shift is imminent:

Bitcoin Becomes the Reserve Currency of Crypto – As interoperability improves, Bitcoin’s role as a universal financial asset strengthens.
Stablecoins Take Over as the Dominant Exchange Medium – Instead of relying on volatile altcoins, stablecoins will likely dominate DeFi and everyday transactions.
The Death of Many Altcoins – Coins with no clear use case beyond their chain will struggle to maintain relevance.

Final Thoughts: The Beginning of the End for Altcoins?

Layer 2 solutions have shattered the idea that altcoins need to exist solely for their respective chains. As Bitcoin and stablecoins become the primary assets of the crypto world, the role of ETH and other altcoins is being questioned.

While tokens representing equity, bonds, and derivatives will thrive, the concept of altcoins as independent currencies is fading.

Are we witnessing the end of the altcoin era? If the rise of Layer 2 solutions continues, the answer may very well be yes.

Altcoin Future Bitcoin Layer 2 Crypto Fragmentation DeFi Evolution Ethereum Rollups
Share. Twitter Facebook Telegram Email Bluesky Reddit Copy Link
Previous ArticleEl Salvador Adopts Bitcoin as Legal Tender: A World-First Move
Next Article Litecoin Surges as PayPal Expands Crypto Offerings, Outperforming Bitcoin
Karly Marie
Karly Marie

Related Posts

Press Release

EVAA: TON’s $1.4B DeFi Protocol Becomes Community-Owned DAO With $EVAA Token

October 15, 2025
BNB

Pardon for Binance CEO CZ? Trump’s Move Stuns Markets

October 14, 2025
BNB

BNB Memecoins Crash After CZ’s Tweet—Millions Lost Overnight!

October 14, 2025
– Advertisement –
Trending Posts
News

Changpeng Zhao Officially Requests Presidential Pardon

May 9, 2025
Crypto

Nasdaq: Crypto as Securities in Digital Asset Market?

April 29, 2025
Markets

Etoro Shares Hit $4.3B Valuation

May 14, 2025

Crypto Junction, founded in 2014, is one of the original and most trusted sources for cryptocurrency news and blockchain insights. We provide accurate, unbiased, and timely coverage of digital assets, market trends, and industry developments.

All content on Crypto Junction is for informational and educational purposes only and should not be considered financial, investment, or legal advice. Cryptocurrency investments are highly volatile and carry risks. Always conduct your own research before making financial decisions.

We're social. Connect with us:

X (Twitter) Telegram
Top Insights

EVAA: TON’s $1.4B DeFi Protocol Becomes Community-Owned DAO With $EVAA Token

October 15, 2025

Pardon for Binance CEO CZ? Trump’s Move Stuns Markets

October 14, 2025

China Tariff News Triggers Crypto Crash — Bitcoin Hits $102K!

October 14, 2025
ABOUT
  • About Us
  • Cookie Policy
  • Editorial Policy
  • Investment Disclaimer
  • Press and Media Kit
  • Terms of Service
  • Affiliate Disclosure
  • Contact Us
  • Crypto Marketing
  • Daily Digest News
Telegram X (Twitter)
  • Altcoin News
  • Bitcoin News
  • Dogecoin News
  • Ethereum News
  • Litecoin News
  • Meme Coin News
  • Solana News
  • XRP News
© 2025 Crypto Junction

Type above and press Enter to search. Press Esc to cancel.

bitcoin
Bitcoin (BTC) $ 110,827.69
ethereum
Ethereum (ETH) $ 4,062.73
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 1,130.59
xrp
XRP (XRP) $ 2.45
solana
Solana (SOL) $ 192.70
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 4,058.44
tron
TRON (TRX) $ 0.322357
dogecoin
Dogecoin (DOGE) $ 0.201186
cardano
Cardano (ADA) $ 0.666066
wrapped-steth
Wrapped stETH (WSTETH) $ 4,939.15
wrapped-beacon-eth
Wrapped Beacon ETH (WBETH) $ 4,384.95
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 110,781.68
figure-heloc
Figure Heloc (FIGR_HELOC) $ 1.00
chainlink
Chainlink (LINK) $ 17.80
ethena-usde
Ethena USDe (USDE) $ 1.00
wrapped-eeth
Wrapped eETH (WEETH) $ 4,384.28
stellar
Stellar (XLM) $ 0.32588
hyperliquid
Hyperliquid (HYPE) $ 38.60
sui
Sui (SUI) $ 2.65
bitcoin-cash
Bitcoin Cash (BCH) $ 479.18
weth
WETH (WETH) $ 4,061.93
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00
avalanche-2
Avalanche (AVAX) $ 20.94
leo-token
LEO Token (LEO) $ 9.44
usds
USDS (USDS) $ 1.00
usdt0
USDT0 (USDT0) $ 1.00
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 110,830.69
hedera-hashgraph
Hedera (HBAR) $ 0.176122
litecoin
Litecoin (LTC) $ 95.12
mantle
Mantle (MNT) $ 1.95
whitebit
WhiteBIT Coin (WBT) $ 42.11
shiba-inu
Shiba Inu (SHIB) $ 0.00001
monero
Monero (XMR) $ 317.39
the-open-network
Toncoin (TON) $ 2.25
crypto-com-chain
Cronos (CRO) $ 0.15533
ethena-staked-usde
Ethena Staked USDe (SUSDE) $ 1.20
polkadot
Polkadot (DOT) $ 3.07
dai
Dai (DAI) $ 0.999547
bittensor
Bittensor (TAO) $ 449.15
zcash
Zcash (ZEC) $ 245.58
uniswap
Uniswap (UNI) $ 6.43
world-liberty-financial
World Liberty Financial (WLFI) $ 0.13338
okb
OKB (OKB) $ 172.72
memecore
MemeCore (M) $ 2.08
aave
Aave (AAVE) $ 228.69
ethena
Ethena (ENA) $ 0.470793
bitget-token
Bitget Token (BGB) $ 4.70
pepe
Pepe (PEPE) $ 0.000007
near
NEAR Protocol (NEAR) $ 2.31
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00
jito-staked-sol
Jito Staked SOL (JITOSOL) $ 238.76
paypal-usd
PayPal USD (PYUSD) $ 1.00
usd1-wlfi
USD1 (USD1) $ 1.00
susds
sUSDS (SUSDS) $ 1.07
c1usd
Currency One USD (C1USD) $ 1.00
aster-2
Aster (ASTER) $ 1.23
ethereum-classic
Ethereum Classic (ETC) $ 16.04
binance-peg-weth
Binance-Peg WETH (WETH) $ 4,059.39
ondo-finance
Ondo (ONDO) $ 0.754591
aptos
Aptos (APT) $ 3.25
falcon-finance
Falcon USD (USDF) $ 0.994843
tether-gold
Tether Gold (XAUT) $ 4,255.62
jupiter-perpetuals-liquidity-provider-token
Jupiter Perpetuals Liquidity Provider Token (JLP) $ 5.49
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.199739
worldcoin-wld
Worldcoin (WLD) $ 0.930146
htx-dao
HTX DAO (HTX) $ 0.000002
gatechain-token
Gate (GT) $ 16.01
usdtb
USDtb (USDTB) $ 0.999813
rocket-pool-eth
Rocket Pool ETH (RETH) $ 4,646.37
story-2
Story (IP) $ 5.55
arbitrum
Arbitrum (ARB) $ 0.322825
kucoin-shares
KuCoin (KCS) $ 13.64
binance-staked-sol
Binance Staked SOL (BNSOL) $ 207.51
hash-2
Provenance Blockchain (HASH) $ 0.03454
pi-network
Pi Network (PI) $ 0.207736
bfusd
BFUSD (BFUSD) $ 1.00
internet-computer
Internet Computer (ICP) $ 3.13
algorand
Algorand (ALGO) $ 0.187109
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 4,287.52
vechain
VeChain (VET) $ 0.018154
cosmos
Cosmos Hub (ATOM) $ 3.29
stakewise-v3-oseth
StakeWise Staked ETH (OSETH) $ 4,286.77
wbnb
Wrapped BNB (WBNB) $ 1,130.84
kinetic-staked-hype
Kinetiq Staked HYPE (KHYPE) $ 38.62
kaspa
Kaspa (KAS) $ 0.05413
pump-fun
Pump.fun (PUMP) $ 0.004081
liquid-staked-ethereum
Liquid Staked ETH (LSETH) $ 4,322.42
pudgy-penguins
Pudgy Penguins (PENGU) $ 0.022765
sky
Sky (SKY) $ 0.059346
pax-gold
PAX Gold (PAXG) $ 4,255.90
render-token
Render (RENDER) $ 2.59
flare-networks
Flare (FLR) $ 0.017598
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 110,700.66
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 4,308.25
sei-network
Sei (SEI) $ 0.200763
syrupusdc
Syrup USDC (SYRUPUSDC) $ 1.13
quant-network
Quant (QNT) $ 85.68
official-trump
Official Trump (TRUMP) $ 6.01