- ADA, ETC and XRP are criticized for being ‘overvalued’ by Forbes analysts.
- Daily activity on the Cardano network is decreasing along with TVL.
A recent list created by Forbes recently cited Cardano [ADA]Ripple [XRP] and Ethereum Classic [ETC]among many other coins, as “zombie” tokens.
Altcoins are under attack
“Zombie blockchains” are blockchain projects that, like the undead, continue to exist without showing signs of vitality in terms of usefulness or significant user bases.
These tokens persist and may even sustain financial success primarily through speculative trading and substantial initial funding, rather than through achieving their intended technological or practical objectives.
Forbes suggests that certain blockchain projects, dubbed “zombies,” appear to be traded primarily on the reputation of their creators.
They gave an example of Cardano, positioned as another competitor to Ethereum [ETH]debuted in 2017 after a rift between co-founder, Charles Hoskinson, and his Ethereum counterpart, Vitalik Buterin.
Analysts said the speculative interest in Cardano stems largely from the fame of its founder.
Cardano’s network statistics also did not paint a positive picture.
At the time of writing, the number of daily active addresses on the Cardano network had dropped significantly, and in addition, the number of transactions on the network had also decreased.
Even in the DeFi sector, Cardano witnessed a massive drop in TVL (Total Value Locked), which could impact the revenue collected by the network in the future.
Source: Artemis
In terms of price, ADA did not do well either. In the last 24 hours, ADA’s price has fallen by 3.08% and stood at $0.456 at the time of writing.
However, the speed at which ADA acted had increased.
Source: Santiment
Ripple and ETC are facing the heat
According to Forbes analysts, Ripple Labs qualifies as a “crypto zombie.” Despite actively trading around $2 billion per day, XRP tokens serve no purpose other than speculation.
The analysts noted that while SWIFT remains robust, there are now more efficient methods for international payments using blockchains, especially stablecoins such as Tether, which is pegged to the US dollar.
Read Ripple’s [XRP] Price forecast 2024-25
At the time of writing, XRP was trading at $0.5159 and its price was down 1.24% over the past 24 hours. Volume was also down significantly during this period.
Other coins such as ETC were also not spared. It is widely regarded as an Ethereum alternative that was only used by purists. The price had fallen by 17% in the last month itself.
Source: Santiment