Alliance DAO co-founder QwQiao has expressed skepticism regarding the long-term investability of Layer 1 (L1) tokens. He argues that the primary issue facing these assets is not valuation metrics like high P/E ratios, but rather the fundamental lack of sustainable moats for these networks. He noted that assets can easily bridge between chains and developers can migrate with relatively low friction, making L1s prone to commoditization. According to his view, L1 tokens risk becoming commodities rather than capturing significant long-term value, as users and liquidity are highly fluid across the ecosystem. [Update 1] In further detailing his thesis, QwQiao suggested that for chains to establish a defensible moat, they may need to pursue vertical integration, effectively controlling the application layer. He cited examples such as Solana and Hyperliquid as models for this approach, implying that general-purpose chains without sticky applications or specific vertical dominance face an uphill battle against commoditization.