Monero will never go to zero(why are you measuring in dollars?) because if you believe it has a utility value for privacy, there will always be a price above zero.

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Until Bitcoin/LN/other layer can provide the level of easy privacy that monero does, it'll have a market value. Bitcoin will always have a massive (and growing) liquidity advantage over XMR tho, as they're competing for different markets

L2 privacy can never be a full replacement for L1 privacy.

L2 sacrifices major aspects of onchain like self-custody, permissionlessness, p2p, final settlement, etc

Monero is already king of privacy coins too. Network effect has too much momentum. You'll have to get users and markets to switch over. Look at Lightning and Liquid. Been around for years already but only a tiny fraction of those businesses and users that accept onchain Bitcoin accept them.