The idea of culling weak tokens is nothing new. Cardano founder Charles Hoskinson and Ethereum co-founder Vitalik Buterin once predicted over 90% of ICO-era projects would fail. Ripple CEO Brad Garlinghouse agreed in 2019 that 99% of all cryptocurrencies would vanish. At Consensus Miami 2026, BitMEX co-founder Arthur Hayes doubled down, stating that "99% of altcoins could eventually go to zero," citing fiat liquidity as the only real driver for survivors.
Purge Isn't Over Yet
Ben Cowen, founder of Into the Cryptoverse and a market analyst, told CoinDesk that while the cleansing has been underway since 2021, a more meaningful "junk-coin cleansing" is needed before Bitcoin can sustain a bull cycle. He observed capital rotating away from high-risk assets, either consolidating into Bitcoin or moving to the sidelines. Excluding stablecoins, his firm estimates Bitcoin dominance already exceeds 67%, compared to the publicly reported 60%.
Bitcoin recently climbed above $81,000 for the first time since late January. Some, like Michael Saylor, consider the crypto winter over. But a growing number of analysts call this a "relief rally" built on apathy rather than euphoria. Liquidity below $60,000 remains untouched, and the 200-day moving average poses a critical test.
The $88,880 Line in the Sand
Bitcoin is bumping against its 200-day moving average near $82,300. Historically, failing to settle above this level triggers a sharp drawdown as buyer confidence wanes. CryptoQuant analysts wrote on X: "For the bottom to be confirmed, price needs to clear 88,880 and hold—not wick through, not retest and fail. That puts the most recent cohort back in profit and removes the first layer of sell pressure." Ben Cowen warns that if Bitcoin cannot flip $88,880 into support in the coming days, a pullback toward $58,000–$62,000 is the most probable outcome.
Over 25 Million Tokens Deployed, Mortality at Record High
GeckoTerminal data shows more than 25 million token deployments since launch, but the "mortality rate" has reached record levels. Over 11.6 million tokens failed in 2025 alone, largely due to the collapse of the saturated memecoin sector. Cowen notes Bitcoin dominance gradually declined from over 99% in 2013 to roughly 33% in 2018, but has since trended higher, reclaiming 60% in late April. Ark Invest recently suggested it could reach 70% by 2030.
"Bitcoin dominance when seen with stablecoins included is misleading," Cowen said. Excluding stablecoins, his firm estimates dominance is already above 67%, reflecting capital rotating out of weaker tokens. "Capital is not rotating into higher-risk assets, but instead consolidating into Bitcoin or moving to the sidelines," he wrote in his April 2026 Crypto Risk Memo.
In short, a sustainable Bitcoin bull market may depend less on a quick breakout to new highs and more on whether millions of junk coins are truly cleared from the system. The purge continues.