Alliance DAO co-founder: It's hard to convince myself to hold L1 tokens long-term because there is no "moat"

ChainCatcher News, Alliance DAO co-founder QwQiao stated on social media, "The reason I find it hard to convince myself to hold L1 public chain tokens for the long term is not because their price-to-earnings (P/E) ratios are high, but because they lack a moat. Without a moat, they become commoditized and are unable to capture meaningful value."

Nowadays, users can easily transfer assets across chains. Except for a few complex smart contracts, most application developers can quickly migrate from one chain to another. Moreover, launching a new chain is easier now than ever before. The switching cost for blockchains is far lower than that of infrastructures like AWS.

The only way I currently see for chains to strengthen their own moat is to verticalize and take control of the application layer. My observation is that chains such as Solana, Base, and Hyperliquid have already reached this conclusion and are actively moving in this direction. Of course, emerging enterprise-level chains like Tempo are doing the same.

I firmly believe that exponential growth in the crypto industry is almost beyond doubt, but the best way to express this view is to bet on the application layer."