Alliance DAO Co-founder: It's hard to convince myself to hold L1 Token for the long term, as there is no "moat".

On November 28, QwQiao, co-founder of Alliance DAO, posted 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 P/E ratio ( is very high, but because they lack a moat. Without a moat, they will become commoditized and fail to capture meaningful value. Nowadays, users can easily transfer across chains. Except for a few complex smart contracts, most application developers can also quickly migrate from one chain to another. Moreover, starting a new chain is easier than ever. The switching costs of blockchain are far less than those of infrastructure like AWS. The only way I currently see chains strengthening their moats is by verticalizing and controlling the Application Layer. My observation is that chains like Solana, Base, and Hyperliquid have already come to this conclusion and are actively pushing forward. Of course, emerging enterprise-level chains like Tempo are doing the same. It is almost unquestionable that the cryptocurrency industry will experience exponential growth, but the best way to express this viewpoint is to bet on the Application Layer.”