Forbes Unveils 20 Crypto ‘Zombies,’ Declares Ripple And XRP Among The Undead – NewsBTC

Featured XRP and Ethereum Classic

Ripple Labs, the company that developed XRP, attracted attention as a famous cryptocurrency zombie. Despite XRP’s active trading volume of approximately $2 billion daily, Forbes claims that the token’s primary purpose remains “speculative” and “lacks any meaningful utility.” .

However, Ripple Labs and XRP are not alone in this regard. According to Forbes, 50 blockchain, excluding Bitcoin (BTC) and Ethereum (ETH), currently trade at a value of over $1 billion, and at least 20 of them are classified as “functional zombies.” Despite their “limited user base,” these 20 blockchains have a combined market value of $116 billion.

According to Forbes, the top 20 cryptocurrency “zombie” projects. sauce: DeFi Ignas on X

According to Forbes, an example of a “functional zombie” is Ethereum Classic, which maintains the distinction of being original. Ethereum chain.

ETC has a market value of $4.6 billion, but will generate less than $41,000 in fees in 2023, raising questions about the viability of blockchain for news organizations.

Another crypto project featured in the Forbes report is Tezos, which raised $230 million through an initial coin offering (ICO) in 2017.

Tezos’ XTZ token currently has a market capitalization of $1.2 billion.However, blockchain fees are income In February 2024, it was $5,640, and for all of 2023, it totaled just $177,653.

Algorand, once touted as the “Ethereum killer” for its ability to process 7,500 transactions per second, faces similar challenges.

Despite having a market capitalization of $2 billion and a Treasury holding of $500 million, Algorand earned $63,000 in blockchain transaction fees throughout 2023. For Forbes, this calls into question its actual adoption and usefulness.

Crypto “zombie” blockchain

Forbes categorizes zombie blockchains into two groups. Spin-offs and direct competitors of established blockchains. Bitcoin And Ethereum.

Spinoff zombies include Bitcoin Cash (BCH), Litecoin (LTC), Monero (XMR), Bitcoin SV (BSV), and Ethereum Classic.

These blockchains, valued at a total of $23 billion, were reportedly born out of “disagreements” between programmers over their governance and direction. original chain.

Forbes points out that when such a conflict occurs, a hard fork occurs, resulting in a new network that shares the same transaction history as its predecessor. The agency claims its market value “often exceeds” its real-world usage.

Overall, this report highlights the growing disconnect between the valuation of a particular project in the crypto industry and its actual utility and usage. Therefore, Forbes calls these projects “zombies.”