Debate has intensified once again over the need to purge the cryptocurrency market of speculative or so-called “junk” projects. Cardano founder Charles Hoskinson and Ethereum co-founder Vitalik Buterin had previously predicted that most of the coins launched during the ICO era would eventually fail. Similarly, Ripple CEO Brad Garlinghouse argued that 99% of all cryptocurrencies would disappear over time.
Rising demand for a market clean-up
Market analysts such as Ben Cowen point out that since 2021, many weak projects have already been wiped out, yet a more comprehensive purge is still needed for Bitcoin to trigger a lasting rally. Cowen believes it is unlikely to see a sustainable bull market unless thousands of speculative tokens are removed, suggesting that liquidity shifting to stronger assets like bitcoin could quickly eliminate underperforming coins.
According to GeckoTerminal, over 25 million tokens have been launched overall, and in 2025 alone, more than 11.6 million have already failed, largely due to an implosion in the over-inflated memecoin market. The spread of automated launchpads increased the number of fragile projects; Matthew Pinnock, COO of Altura DeFi, noted that 86% of coins launched in 2025 failed within a short period.
Major resistance points for bitcoin’s price
On Thursday, bitcoin surged past $81,000 for the first time since the end of January, drawing investors’ attention. While high-profile industry figure Michael Saylor described this move as the end of the crypto winter, many analysts see the rally as merely a relief bounce. Technical resistance points like liquidity under $60,000 and the 200-day moving average suggest the uptrend is not yet confirmed.
Some believe that as long as bitcoin fails to close convincingly above its 200-day moving average, now around $82,300, downside risks persist. Cowen stated that unless the price can firmly break and hold above $88,880, there is an increased likelihood of a short-term retraction to the $58,000-$62,000 range.
Technical analysts emphasize that, “To confirm a bottom, the price must not only cross but also hold above 88,880; short-lived wicks or failed retests are not enough. Only then does the first layer of selling pressure disappear.”
Shift in bitcoin market dominance
Bitcoin’s dominance in the market is on the rise. From a former 99% in 2013, this share dropped to 33% by 2018 as altcoins proliferated. In late April, bitcoin’s dominance again reached 60%, with Ark Invest projecting it could hit 70% by 2030. Cowen notes that, excluding stablecoins, bitcoin’s share is already over 67%, reflecting a migration of capital from higher-risk tokens to bitcoin.
Recently, the total market capitalization of memecoins dropped from about $150 billion in December 2024 to under $50 billion today. Luke Nolan of CoinShares reports that 95% of tokens in the market are effectively worthless.
Cowen cautions that headwinds persist: ongoing geopolitical tensions and the Federal Reserve’s cautious stance on rate cuts make it unlikely for bitcoin to reach a new all-time high by 2026. Veteran investor Peter Brandt, however, predicts that bitcoin could climb to $250,000 by 2029 after a prolonged bottoming process. Michael Terpin notes bitcoin needs to dip to $57,000 first, which could set the stage for a sustained surge.
Cowen notes, “Since 2021 in this cycle, we have seen a steady decline in participant numbers and a consistent upward trend in bitcoin dominance. This shows a clear exodus from high-risk coins under current conditions.”
In the current cycle, bitcoin has fallen from above $126,000 to $60,000—a drop of more than 50%. This retracement aligns with the late-stage pullbacks historically seen in previous market cycles.
