On a controversial note reportForbes Revealed a List of 20 ‘Crypto Billion Dollar Zombies’ Layer 1 (L1) tokens, which the news outlet defines as crypto assets with substantial valuations but “limited utility outside of speculative trading.”
These cryptocurrencies and projects include Ripple, XRP, Ethereum Classic (ETC), Tezos (XTZ), Algorand (ALGO), and Cardano (ADA).
XRP and Ethereum Classic in the spotlight
Ripple Labs, the company behind XRP, was highlighted as a prominent crypto zombie. Despite XRP’s active trading volume of approximately $2 billion per day, Forbes claims that the token’s primary purpose remains “speculative” and “lacks meaningful use.”
However, Ripple Labs and XRP are not alone in this regard. Forbes reveals that 50 blockchains, excluding Bitcoin (BTC) and Ethereum (ETH), are currently trading at values of over $1 billion, with at least twenty of them classified as “functional zombies.” Collectively, these 20 blockchains have a market value of $116 billion, despite having “limited user bases.”
According to Forbes, Ethereum Classic is an example of a “functional zombie,” which retains the distinction of being the original Ethereum chain.
While ETC has a market value of $4.6 billion, its 2023 revenue was less than $41,000, raising questions about the viability of the blockchain for the news organization.
Another crypto project in Forbes’ report is Tezos, which raised $230 million through an Initial Coin Offering (ICO) in 2017.
Tezos’ XTZ token currently has a market cap of $1.2 billion. However, the fee of the blockchain income were meager, with $5,640 in February 2024 and a total of $177,653 for all of 2023.
Algorand, once hailed as an “Ethereum killer” for its ability to process 7,500 transactions per second, faces similar challenges.
Despite a market capitalization of $2 billion and a treasury position of $500 million, Algorand earned $63,000 in blockchain transaction fees in 2023. For Forbes, this casts doubt on its actual adoption and usefulness.
Crypto ‘Zombie’ Blockchains
The zombie blockchains are divided by Forbes into two groups: spin-offs and direct competitors of established blockchains such as Bitcoin and ether.
Spin-off zombies include Bitcoin Cash (BCH), Litecoin (LTC), Monero (XMR), Bitcoin SV (BSV), and Ethereum Classic.
These blockchains, collectively valued at $23 billion, reportedly emerged from “disagreements” between programmers over the governance and direction of the blockchain. original chains.
Forbes notes that when such conflicts arise, hard forks emerge, resulting in new networks that share the same transaction history as their predecessors. The agency claims that their market value “often exceeds” their real-world use.
Overall, the report highlights a growing disparity between the valuations of certain projects in the cryptocurrency industry and their actual utility and use. That’s why Forbes calls these projects ‘zombies’.
Featured image from Shutterstock, chart from TradingView.com
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