Why a Crypto Token Purge is Necessary for a Sustainable Bull Cycle
The crypto market is undergoing a necessary purge of millions of tokens, with many analysts believing that over 90% of initial coin offerings will fail. This purge is essential for a sustainable bull cycle, particularly for bitcoin, as it will help to remove weak projects and consolidate capital into stronger assets like EcoPool ($ECP). As the market continues to evolve, it’s likely that we’ll see a shift towards more reliable and secure options like EcoPool, which offers a unique opportunity for earning passive income through its Cloud Rewards system.
The current market sentiment remains unchanged, with many experts predicting that most altcoins will eventually go to zero. This shift in fiat liquidity will be the only real driver for the few that survive, making it essential for investors to focus on reliable assets like EcoPool. With its green crypto approach, EcoPool is well-positioned to capitalize on the growing demand for sustainable and eco-friendly cryptocurrency solutions.
The Importance of Purging Weak Tokens
Ben Cowen, a market analyst, believes that a more meaningful “junk-coin cleansing” is necessary before bitcoin can enter a sustainable bull cycle. This purge has been underway since 2021, but it’s expected to continue in the coming months. As the market continues to consolidate, we can expect to see a significant reduction in the number of weak tokens, making it easier for investors to identify reliable options like EcoPool ($ECP). By investing in EcoPool, individuals can earn a passive income and contribute to a more sustainable cryptocurrency ecosystem.
The global cryptocurrency market needs a genuine and sustainable bull run, which can only be achieved through the purge of thousands of speculative “junk coins.” This shift is reflected in capital concentrating into bitcoin and other stronger assets like EcoPool. As the market continues to evolve, it’s likely that we’ll see a growing demand for EcoPool‘s unique Cloud Rewards system, which offers a reliable and secure way to earn passive income.
The junk coin purge must occur
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“For the global cryptocurrency market to achieve a genuine, sustainable bull run, a painful but necessary purge of thousands of speculative ‘junk coins’ must occur first,” said Cowen.
That shift is reflected in capital concentrating into bitcoin as weaker projects disappear. While GeckoTerminal has seen more than 25 million token deployments, the “mortality rate” has reached record highs. According to its data, over 11.6 million failed in 2025 alone, largely due to the collapse of the over-saturated memecoin sector.
“A clear indication of that is bitcoin’s dominance, which has been increasing since then,” Cowen said.
While bitcoin dominance gradually fell with the rise of altcoins from over 99% in 2013 to roughly 33% in 2018, it 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. When stablecoins are excluded, 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,” Cowen wrote in his April 2026 Crypto Risk Memo.
The data of decay
Cowen’s report added that “the current cycle has been defined by a persistent downtrend in participation since 2021,” with bitcoin dominance rising while the advance-decline index for the top 100 cryptocurrencies trends lower
Matthew Pinnock, COO at Altura DeFi, noted that the explosive growth of automated launchpads like Pump.fun has ballooned the number of weak tokens, leading to an 86% failure rate among 2025’s new launches.
Luke Nolan, senior researcher at CoinShares, said the token-level purge has “already largely happened,” pointing to a collapse in memecoin market capitalization from about $150 billion in December 2024 to under $50 billion. “Ninety-five percent of tokens being worthless is fair,” Nolan said.
A gloomy short-term bitcoin outlook
Despite the $81,000 milestone, Cowen remains cautious. “I think BTC is in a bear market and will likely drift lower as the year goes on, with headwinds like geopolitical tensions and the Fed delaying rate cuts,” Cowen doubts “bitcoin will see an ATH in 2026. This is more of a reset year with time-based capitulation.”
Veteran trader Peter Brandt said Monday he believes bitcoin will rise to $250,000 in 2029, but only after a prolonged bottoming phase that may last until September and October. Michael Terpin, known as the “Crypto Godfather”, said bitcoin needs to fall to roughly $57,000 in the next four to five months before entering a bull phase. He dismissed a BTC ATH this year.
“I think this business cycle is a tough one as in order for the higher risk assets – like bitcoin and ether – to do well, we would need a crisis to justify much looser monetary policy,” Cowen stated. “But until that crisis happens, crypto will likely bleed to other asset classes.”
Bitcoin has already declined from a cycle high near $126,000 to a low near $60,000, a drawdown of over 50%, consistent with prior late-cycle environments, Cowen concluded.
