CZ says we need more dApps after new chains crash

CZ says that the crypto sphere ‘needs more dApps’ rather than new chains in response to a post highlighting how new chains struggle.

Former Binance CEO Changpeng “CZ” Zhao emphasized the need for crypto industry builders to focus more on developing decentralized applications or dApps, rather than creating new blockchain networks.

“Need more dapps instead of chains,” wrote CZ in a recent post.

CZ’s comment was made in response to a statistic shared by a Messari researcher @defi_monk which spotlights how new blockchains are experiencing a decline after their respective Token Generation Events.

According to data from Messari, Starknet (STRK)’s token cumulative return has gone down by 87% and Dymension (DYM) experienced the same decline. Meanwhile, Blast (BLAST) has decreased by 85%, Mode went down by 70%. Even big names like Berachain (BERA) and Scroll (SCR) mainnets have seen steep declines by 59% and 50%.

The only exception on the list is Hyperliquid (HYPE), which has experienced a substantial increase of 1,100% since its TGE.

The Messari researcher added that the market has recently seen around $10 billion in long position liquidations, and by the end of April, $17 billion worth of token unlocks have entered the market. This indicates that the crypto market has become saturated by the emergence of more and more Layer1 blockchains and Layer 2 solutions.

“The market can no longer absorb execution environments that add no value,” said the researcher.

Many users were quick to agree with CZ, stating that there are too many chains on the market and there needs to be more decentralization in order to help the crypto industry grow.

As previously reported by crypto.news, Berachain carried out one of the largest airdrops this year alongside the release of its highly anticipated mainnet. However, the the token’s value plummeted as insider began dumping the token, dragging the price down by at least 63% from its previous high.