AllianceDAO founder says Layer 1s lack distinct competitive advantages

Qiao Wang, founder of AllianceDAO, has argued that Layer 1 tokens are difficult to hold for the long term because they lack distinct competitive advantages. In a post on X, he explained that cross-chain bridges have become very easy to use, and most app developers can migrate to other chains without significant hurdles, except for those with complex smart contracts. Wang added that launching new chains is easier than ever, making the cost of switching blockchain ecosystems much lower than for cloud platforms like Amazon Web Services (AWS). In his view, the only way for these networks to strengthen their competitiveness is to vertically integrate by directly owning the application layer. Wang noted that chains such as Solana, Base, and Hyperliquid have already adopted this strategy, and that next-generation enterprise chains like the payments-focused blockchain Tempo are implementing similar plans. He concluded that for those who believe in the technology's growth, the best approach is for the chain to own the app layer directly.