Alliance DAO co-founder: L1 token lacks a moat; betting on the application layer may be the way out.

QwQiao, co-founder of Alliance DAO, stated on the X platform that he finds it difficult to convince himself to hold L1 public chain tokens long-term. The reason is not their high price-to-earnings ratio (P/E), but rather the lack of a moat, making them easily commoditized and difficult to capture meaningful value. Currently, cross-chain transfers are very convenient for users, and most application developers can quickly migrate their applications from one chain to another. Furthermore, launching a new chain is significantly easier than before, and the cost of switching blockchains is far lower than that of infrastructure like AWS.