Andre Cronje Criticizes Layer-2 Appchains For High Costs And Fragmented Liquidity

According to Cointelegraph, Andre Cronje, co-founder of Sonic Labs, has expressed concerns about the practicality of layer-2 (L2) appchains for developers. In an Oct. 13 post on X, Cronje highlighted issues such as high infrastructure costs, fragmented liquidity, and insufficient developer support, which he believes hinder the widespread adoption of appchains. Appchains are customized blockchains tailored to meet the specific needs of decentralized applications (DApps) or particular functions. Cronje's primary criticism revolves around the high costs associated with deploying and maintaining appchains. He pointed out that infrastructure expenses, including regulatory compliance and oracles, quickly accumulate. Cronje revealed that his team's infrastructure costs have already reached $14 million this year, making it challenging for developers to focus on their core applications and users. However, Hilmar Orth, founder of Gelato Network, disagreed with Cronje's assessment. Orth argued that the necessary infrastructure is now easily accessible through rollup-as-a-service (RaaS) providers, eliminating the need for developers to build infrastructure from scratch. He emphasized that support from framework teams and RaaS providers is readily available, countering Cronje's concerns about isolation. Cronje also raised concerns about liquidity fragmentation in appchains, claiming that liquidity is forced onto bridges, which are centralized and vulnerable to attacks. Marc Boiron, CEO of Polygon Labs, proposed the AggLayer as a solution to these liquidity issues by creating an interoperable network of appchains. Boiron's stance reflected optimism for appchain liquidity management if made fungible across multiple chains to reduce fragmentation risks effectively. Orth echoed this optimism, asserting that rollups already come with built-in bridges and market makers, and that faster zk proofs optimize the movement of funds. Cronje further stated that L2s, as appchains, lack a community of users or builders, diminishing the network effects necessary for appchains to thrive. Boiron disagreed, claiming that community and network effects are alive and well, with many contributors helping to grow the AggLayer. Hilmar also refuted both Cronje's and Boiron's community statements, arguing that builders often compete against each other for users rather than collaborating. The ongoing debate between Cronje, Orth, and Boiron continues to gain attention on X, highlighting the division of opinions on L2s as appchains.