Former Binance CEO Changpeng “CZ” Zhao has voiced his support for prioritizing decentralized application (dApp) development over launching new blockchain networks.
His comments come amid growing concerns about the underperformance of newly launched blockchains following their Token Generation Events (TGEs).
In a February 12 post on X, Zhao stated,
“Need more dapps instead of chains,”
in response to data shared by Messari researcher @defi_monk, highlighting the disappointing returns of several major blockchain projects post-launch.
According to the report, Starknet’s token has plummeted by 87%, Dymension has seen an identical drop, while Blast has declined by 85%.
Other networks, including Mode, Berachain, and Scroll, have also struggled, with losses of 70%, 59%, and 50%, respectively. One exception to this trend is Hyperliquid, which has defied the downturn with an astonishing 1,100% surge since its TGE.
The researcher further noted that the crypto market has recently experienced $10 billion in long position liquidations, alongside an additional $17 billion worth of token unlocks expected to enter circulation by the end of April. This influx has contributed to market oversaturation, making it increasingly difficult for new blockchain projects to sustain their value.
“The market can no longer absorb execution environments that add no value,”
the researcher stated, reinforcing the argument that launching more chains does not necessarily benefit the ecosystem.
Zhao’s stance has resonated with many in the crypto community, with other X users echoing his call for meaningful development and decentralization rather than an endless expansion of blockchain networks.
Zhao has also previously expressed concerns about another growing trend in the crypto space—the surge in meme coin popularity. He described the meme coin frenzy as “a little odd” and urged blockchain developers to shift their focus toward utility-based innovations. He called on creators to prioritize building meaningful applications with real-world value rather than chasing hype-driven tokens with little long-term sustainability.
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