Layer 2 narratives are getting destroyed this cycle.
$MEGA ETH is now down over 50% from ATHs and trading well below ICO levels.
That’s brutal.
And honestly, this is exposing a bigger issue with many Layer 2 projects:
→ massive valuations
→ weak value accrual
→ endless token unlocks
→ little reason for the token itself to sustain value
Most of these ecosystems generated more wealth for insiders, VCs and market makers than actual long-term holders.
Harsh truth:
Launching a Layer 2 doesn’t automatically create demand for the token.
The market is becoming far more selective now.
Capital is flowing toward:
→ real revenue
→ strong ecosystems
→ actual user activity
→ tokens with clear utility/value capture
Everything else gets sold eventually.
I’m not saying every Layer 2 dies.
But blindly buying every new L2 narrative this cycle has been a disaster for many traders.
This market rewards selectivity, not hype.
