Key Notes

Key Notes:

Former Binance CEO CZ stressed that the crypto industry needs more decentralized applications (dApps) instead of repetitive blockchain networks.Research by Messari revealed Starknet, Dymension, and Blast saw token values plunge over 85%, exposing investor disinterest.Hyperliquid surged 1,100% while $10 billion in liquidations and $17 billion in token unlocks threaten more market sell-offs.

Former Binance CEO Changpeng “CZ” Zhao has weighed in on the struggles of new blockchain projects, emphasizing that the crypto industry needs more decentralized applications (dApps) rather than an endless stream of new networks. His comment comes as several new chains have seen their token values plummet shortly after launch.

“Need more dapps instead of chains,” CZ stated in response to a post highlighting the sharp declines in token values of recently launched blockchains. Many experts share that view as data indicates the majority of new blockchain projects are failing to hold investor interest, leaving their tokens in freefall.

Photo: MONK / Messari

According to research by Messari, blockchain networks like Starknet and Dymension have witnessed an 87% drop in token value since their Token Generation Events (TGE). Blast has seen an 85% decline, while Mode has dropped by 70%. Even well-known projects like Berachain and Scroll have not been spared, suffering declines of 59% and 50%, respectively.

Among the struggling projects, only Hyperliquid has managed to buck the trend. Since its token launch, it has skyrocketed by a staggering 1,100%, making it the lone success story in a sea of disappointing performances. This rare exception highlights the broader issue at play – investors are no longer willing to throw money at new blockchains that fail to offer something unique.

Messari’s data underscores the liquidity crisis hitting the crypto market. Nearly $10 billion in long liquidations have rocked the space, and with another $17 billion in token unlocks expected by the end of April, the sell-off pressure is only mounting. Speculative bets on new Layer 1 and Layer 2 chains are drying up as capital shifts elsewhere, leaving many projects struggling to gain traction.

“The market can no longer absorb execution environments that add no value,” noted a Messari researcher, reinforcing CZ’s stance that the industry must focus on creating dApps instead of churning out more blockchains that do little to differentiate themselves.

CZ’s remarks have struck a chord with many in the crypto community. Users were quick to agree, pointing out that there are already too many blockchains competing for attention while real innovation remains scarce. Calls for greater decentralization and functional applications are growing louder as the industry grapples with an oversaturated market.

Meanwhile, some of the largest airdrops in recent memory have failed to sustain their hype. Berachain, for example, launched its highly anticipated mainnet alongside a massive airdrop, only to see its token value crash over 60% as insiders dumped their holdings. The rapid sell-off highlights the dangers of speculative investing in new blockchain networks without strong, sustainable ecosystems.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.

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