CZ Urges Focus on dApps Amid New Blockchain Failures
Former Binance CEO Changpeng "CZ" Zhao emphasized the need for more decentralized applications (dApps) rather than new blockchain networks. His comments come amid significant declines in token values of recently launched chains:
- Starknet and Dymension: 87% drop since Token Generation Events.
- Blast: 85% decline.
- Mode: 70% decrease.
- Berachain: 59% drop.
- Scroll: 50% reduction.
Only Hyperliquid has seen a notable increase, with its token rising by 1,100%. This highlights investor reluctance to back new blockchains that lack unique features. The crypto market faces a liquidity crisis with nearly $10 billion in long liquidations and $17 billion in upcoming token unlocks, leading to reduced speculative investments in Layer 1 and Layer 2 chains.
The community agrees on the oversaturation of blockchains and the scarcity of innovative use cases. Recent large airdrops, such as Berachain's, have also failed to maintain their value, demonstrating risks associated with speculative investing in new networks.