Altcoin
Cardano, XRP, ETC face ‘zombie’ allegations: Bad news for their future?
Posted:
| Last updated: June 17th, 2024
Journalist
- ADA, ETC and XRP get criticized for being ‘overvalued’ by Forbes analysts.
- Daily activity on the Cardano network declines, along with TVL.
A recent list created by Forbes recently cited Cardano [ADA], Ripple [XRP] and Ethereum Classic [ETC], amongst many other coins, as “zombie” tokens.
Altcoins get attacked
“Zombie blockchains” are blockchain projects that, akin to the undead, persist without showing signs of vitality in terms of utility or significant user bases.
These tokens endure and may even sustain financial success primarily through speculative trading and substantial initial funding, rather than by achieving their intended technological or practical objectives.
Forbes suggests that certain blockchain projects, dubbed “zombies,” appear to trade primarily based on the reputation of their creators.
They gave an example of Cardano, positioned as another competitor to Ethereum [ETH], debuted in 2017 following a rift between its co-founder, Charles Hoskinson, and his Ethereum counterpart, Vitalik Buterin.
Analysts proposed that speculative interest in Cardano largely stems from the prominence of its founder.
Cardano’s network metrics did not paint a positive picture as well.
At the time of writing, the number of daily active addresses on the Cardano network had fallen significantly, coupled with that, the number of transactions occurring on the network had also declined.
Even in the DeFi sector, Cardano witnessed a massive dip in TVL (Total Value Locked) which may affect revenue collected by the network in the future.
Source: Artemis
In terms of price, ADA wasn’t doing too well either. In the last 24 hours, the price of ADA had fallen by 3.08%, trading at $0.456 at press time.
However, the velocity at which ADA was trading at had increased.
Source: Santiment
Ripple and ETC face the heat
According to analysts at Forbes, Ripple Labs qualifies as a “crypto zombie.” Despite its XRP tokens trading actively at approximately $2 billion daily, they 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, notably stablecoins like Tether, which is pegged to the U.S. dollar.
Read Ripple’s [XRP] Price Prediction 2024-25
At press time, XRP was trading at $0.5159 and its price had fallen by 1.24% in the last 24 hours. Its volume had also fallen considerably during this period.
Other coins such as ETC had also not been spared. It is widely regarded as an Ethereum alternative that was only being used by purists. Its price had declined by 17% over the last month itself.
Source: Santiment
