The cryptocurrency market is experiencing a powerful resurgence, with major altcoins like XRP and ADA leading a surprising rebound. Despite being labeled as “zombie tokens” by Forbes—a term implying lifeless projects with minimal utility—these digital assets are defying expectations and gaining momentum. As the total crypto market cap climbs toward $3.53 trillion, investor sentiment is shifting, and once-dismissed assets are reclaiming relevance.
This article explores the concept of zombie tokens, analyzes the resurgence of XRP and ADA, and examines the broader forces fueling this unexpected market movement.
What Are Zombie Tokens? Identifying the Walking Dead in Crypto
In April 2024, Forbes published a controversial report identifying 20 cryptocurrencies as “zombie tokens”—projects deemed technically operational but functionally stagnant. These assets were criticized for lacking meaningful user engagement, real-world adoption, or technological innovation.
Among those highlighted were well-known names:
- XRP (Ripple)
- ADA (Cardano)
- XLM (Stellar)
- LTC (Litecoin)
- BCH (Bitcoin Cash)
- ETC (Ethereum Classic)
The term “zombie” suggests these projects are alive in form but dead in function—maintained by small developer teams or passive communities, yet failing to evolve or capture significant market utility. Despite this, many are now seeing dramatic price increases, challenging the original assessment.
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XRP: From SWIFT Challenger to Market Contender
Originally developed by Ripple Labs, XRP was designed to revolutionize cross-border payments by offering faster, cheaper alternatives to traditional banking systems like SWIFT. While it succeeded in demonstrating technical efficiency, widespread institutional adoption has been limited.
Critics argue that XRP's primary use case has shifted from real-world utility to speculative trading. At the time of the Forbes report, XRP had a $36 billion market cap and daily trading volumes exceeding $2 billion—yet generated little revenue from actual payment solutions.
Still, the narrative is changing. XRP has surged to become the third-largest cryptocurrency by market capitalization, trading at $2.63—a significant increase from previous levels. This climb reflects renewed investor confidence, possibly fueled by Ripple’s ongoing legal battles with the SEC and growing global interest in blockchain-based remittance systems.
Even if adoption lags, market perception plays a crucial role in crypto valuations. And right now, XRP is very much alive in investors’ minds.
ADA and XLM: Other So-Called Zombies Showing Vital Signs
It’s not just XRP making waves. Cardano (ADA) recently reached $1.23—the highest level since 2022—despite a short-term dip of 4.76% over 24 hours. More impressively, ADA is up 28% week-on-week and a staggering 271% month-on-month, indicating strong accumulation and bullish momentum.
Similarly, Stellar (XLM) hit $194.46 (note: likely a data error; typical unit price is under $0.20—assumed to be a misprint), posting a 12.18% daily gain and 26.9% weekly increase. This surge aligns with growing interest in decentralized finance (DeFi) and cross-border payment infrastructure—areas both Cardano and Stellar aim to serve.
Even Ethereum Classic (ETC) and Litecoin (LTC) are participating in the rally, further proving that older-generation blockchains still hold sway in certain investor circles.
These movements suggest that “zombie” may be less about death and more about dormancy—assets waiting for the right catalyst to re-enter the spotlight.
Why Are Zombie Tokens Coming Back to Life?
Several factors explain this unexpected revival:
1. Market-Wide Bull Run
With Bitcoin approaching the psychological $100,000 mark, the entire crypto ecosystem benefits from increased liquidity and positive sentiment. Altcoins often follow BTC’s lead, experiencing amplified gains during bull cycles.
2. Speculative Momentum
Traders are rotating capital into undervalued or overlooked assets. After major players like Ethereum and Solana reached new highs, attention has turned to high-potential, lower-cap alternatives—including previously dismissed projects.
3. Improved Infrastructure and Ecosystem Development
Despite criticism, platforms like Cardano have continued building. Recent upgrades to its smart contract functionality and DeFi ecosystem may be gaining traction. Ripple’s partnerships with central banks and financial institutions outside the U.S. also hint at long-term utility.
4. Political and Regulatory Optimism
The potential re-election of Donald Trump has boosted market confidence. His perceived pro-crypto stance—evident in campaign donations and policy statements—has led investors to anticipate more favorable regulations, reducing fears of crackdowns.
Frequently Asked Questions (FAQ)
Q: What defines a zombie token in cryptocurrency?
A: A zombie token refers to a cryptocurrency project that remains technically active but shows little innovation, user adoption, or real-world utility. These projects often rely on speculation rather than fundamentals for valuation.
Q: Is XRP truly useless as claimed by critics?
A: While XRP has struggled to achieve mass adoption in banking, it continues to be used in cross-border remittances by several financial institutions globally. Its value also stems from brand recognition, existing infrastructure, and ongoing legal clarity efforts.
Q: Can zombie tokens become valuable again?
A: Yes. Market sentiment, macroeconomic trends, technological upgrades, or regulatory shifts can all breathe new life into dormant projects. Historical examples include Litecoin and Dogecoin, which saw massive rallies years after their peaks.
Q: Why is ADA rising despite being labeled a zombie token?
A: Cardano’s rise may be linked to recent network improvements, growing DeFi activity on its platform, and increased staking participation. Investor belief in its long-term vision also contributes to renewed interest.
Q: Should I invest in so-called zombie tokens?
A: As with any investment, thorough research is essential. While these assets carry higher risk due to uncertain utility, they may offer high reward potential in a bull market. Always assess project fundamentals and market conditions before investing.
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The Bigger Picture: Sentiment vs. Substance
The resurgence of XRP, ADA, and other criticized tokens highlights a core truth in cryptocurrency markets: perception often drives price more than current utility.
While Forbes’ analysis was rooted in objective metrics—low transaction volume, limited dApp activity, stagnant development—the emotional and speculative nature of crypto investing cannot be ignored. In a bull cycle, even forgotten projects can experience dramatic comebacks.
Moreover, technological potential doesn’t expire overnight. Just because a blockchain isn’t dominating headlines doesn’t mean it lacks future promise. Cardano’s research-driven approach or Ripple’s compliance-focused model may yet find their moment in an evolving financial landscape.
Final Thoughts: Are Zombie Tokens Really Dead?
Labeling any technology as “dead” in the fast-moving world of blockchain may be premature. The current rally proves that narrative, timing, and market dynamics can override past performance.
XRP and ADA’s rebounds serve as reminders that crypto valuations are influenced by more than just current usage—they reflect expectations of future utility, regulatory clarity, and macroeconomic forces.
As Bitcoin nears six figures and global interest in digital assets grows, even the so-called walking dead may find themselves back in the game.
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Disclaimer: The information provided in this article is for educational and informational purposes only and should not be construed as financial or investment advice. Always conduct your own research before making any investment decisions.