Story Highlights
- Forbes has identified 20 “zombie blockchains” among major cryptocurrencies, such as Ripple’s XRP and Ethereum Classic, characterized by limited real-world utility and user adoption.
- These cryptocurrencies, despite their high market valuations, lack governance and rely heavily on speculative trading to sustain themselves in the volatile crypto landscape.
Forbes, a respected business publication known for its insightful financial market analysis, recently released a detailed report uncovering a group of cryptocurrencies labeled as “zombie blockchains.”
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Despite the rapid expansion of the cryptocurrency market, which now includes over 14,000 tokens with a combined market capitalization of $2.4 trillion, the identified cryptocurrencies defy conventional success metrics by showing minimal real-world utility and user adoption. Among the prominent cryptocurrencies in this category are Ripple (XRP), Cardano (ADA), Litecoin (LTC), Bitcoin Cash (BCH), and Ethereum Classic (ETC).
These cryptocurrencies are notable for their continued operation and trading activities without clear evidence of practical use. Described as “zombie blockchains,” these projects exist without demonstrating significant signs of life in terms of utility or user engagement.
Assessment of Ripple’s XRP and Other Leading Cryptocurrencies
Among the cryptocurrencies examined by Forbes, Ripple’s XRP is a focal point. Initially positioned as a competitor to the SWIFT banking network, offering fast and cost-effective international bank transfers, XRP has faced challenges in achieving its ambitious objectives. Despite not disrupting SWIFT as intended, XRP remains a valuable cryptocurrency with a market value of $36 billion. However, Forbes analysts suggest that speculative trading, rather than genuine utility, largely supports XRP’s market position.
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This evaluation raises important questions about the fundamental viability and purpose of XRP, highlighting the disparity between market valuation and practical application in the cryptocurrency realm. Similarly, other major cryptocurrencies like Litecoin, Bitcoin Cash, Bitcoin SV, and Ethereum Classic undergo scrutiny in Forbes’ insightful analysis.
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Challenges Faced by “Ethereum Killers” and Governance Issues
In addition to reviewing established cryptocurrencies, Forbes’ report examines emerging contenders often dubbed as “Ethereum killers,” such as Tezos (XTZ), Algorand (ALGO), and Cardano (ADA). Despite their strong technological foundations and significant market valuations, these cryptocurrencies have yet to gain widespread adoption or substantial user interest. Speculative enthusiasm for Cardano, for example, appears to be driven more by its founder, Charles Hoskinson, than by tangible evidence of real-world utility.
Operating without regulatory oversight or obligations to shareholders, these entities navigate uncertain terrain where assessing their long-term viability becomes increasingly complex. Ethereum Classic’s sustained trading activity, despite facing major security breaches, serves as a stark reminder of the risks associated with investing in cryptocurrencies lacking robust governance structures.
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