Eclipse Bets Big on Apps, Not Just Tech, as Market Demands Shift

Eclipse Labs, a Layer 2 blockchain development firm, has undergone significant internal restructuring, including the replacement of its CEO and a major strategic pivot. In a recent announcement, the company confirmed that Vijay Chetty, who was previously known in the crypto space as 0xLitquidity, has voluntarily left the position, with Sydney Huang, the former Product Lead, stepping in as the new CEO. This leadership change comes alongside a 65% workforce reduction, a move the firm attributes to the need to align resources with a revised strategic direction [4].

The restructuring is tied to a broader shift in the company’s focus from infrastructure development to the creation of in-house consumer applications. In a post on the X platform, Huang emphasized the necessity of the change, stating that the market has evolved and that “interesting technology alone is no longer enough.” The new strategy centers on developing a flagship application on Eclipse’s Layer 2 network, aiming to generate direct user engagement and create demand for its infrastructure [4]. This shift reflects a growing trend in the blockchain industry, where firms are increasingly prioritizing user-facing applications to ensure long-term viability in a competitive and rapidly changing market.

The decision to pivot follows the launch of Eclipse’s native token, ES, in July 2025, which has faced a turbulent reception in the market. The token, designed to function as both a gas asset and a governance token for the Eclipse ecosystem, has experienced a sharp decline in value since its initial distribution. As of late August 2025, the ES token was trading below $0.16, having lost more than 65% of its initial value, according to data from CoinMarketCap. This underperformance appears to have accelerated the firm’s strategic reevaluation, prompting the shift from a speculative token-driven model to a product-first approach [4].

The firm’s pivot also aligns with broader industry challenges, including the saturation of infrastructure-focused Layer 2 projects and the growing emphasis on real-world utility and user adoption. By focusing on in-house application development, Eclipse is seeking to differentiate itself in a crowded market where many Layer 2 platforms rely on external developers to build upon their networks. The company’s decision to create its own applications is seen as a high-risk, high-reward strategy, with the potential to establish a direct link between its infrastructure and user base.

While the restructuring is clearly a response to market pressures, it also highlights the broader trend of consolidation and refocusing within the blockchain space. As investor attention shifts toward applications with tangible utility and clear value propositions, companies that fail to adapt risk becoming obsolete. Eclipse’s decision to abandon its infrastructure-only model reflects the growing consensus that long-term success in the blockchain industry requires more than just technical innovation—it demands a clear path to user adoption and revenue generation [4].

The next chapter for Eclipse will likely be defined by the success or failure of its in-house application development efforts. With a reduced workforce and a new leadership team in place, the firm faces the challenge of delivering a product that can attract and retain a user base. The broader performance of the ES token will also remain a key indicator of investor sentiment and market confidence in the company’s new direction.

Source: [1] title1 (https://www.coingecko.com/en/coins/eclipse-2) [2] title2 (https://www.bybit.com/en/price/eclipse-3/) [3] title3 (https://coincodex.com/crypto/eclipse-es/price-prediction/) [4] title4 (https://crypto.news/eclipse-shakes-up-executive-ranks-amid-layoffs-and-app-first-pivot/) [5] title5 (https://cryptonews.net/news/analytics/31477019/)