Foreign media report that Adam Back, CEO of Blockstream, has once again publicly expressed a bearish outlook on altcoins and meme coins. He believes that as market pricing becomes more efficient, many tokens lacking long-term fundamental support may eventually be pushed close to zero.
Bitcoin's market dominance remains high.
Back stated on X that he anticipated years ago that many "air coins," altcoins, and meme coins would be gradually phased out by the market. He now believes this process may finally be reflected in prices.
The article notes that Bitcoin's dominance rate has recently remained around 59%. Continued concentration of funds in Bitcoin suggests that the broader altcoin market is still under pressure this month, and a meaningful rotation has not yet materialized.
A high dominance rate typically compresses the performance space for mid- and small-cap tokens. If capital does not flow out from Bitcoin, altcoin rebounds tend to be shorter-lived and more prone to significant pullbacks.
Nearly 40% of altcoins are nearing their historical lows.
The report, citing previous market data, noted that nearly 40% of altcoins are still trading near their historical lows, reflecting that current market risk appetite is more focused on Bitcoin rather than the more volatile altcoin sector.
The core argument of Back is that if a token lacks a clear long-term source of value, the market will eventually erode support for it. The article notes that such views are common among Bitcoin supporters, who typically emphasize Bitcoin’s fixed supply, network security, and longer track record.
Meme coin liquidity remains, but with greater volatility.
Back has also expanded his criticism to meme coins. He believes that these tokens rely more on network hype than on revenue, protocol fees, or clear utility, making them more vulnerable when liquidity tightens.
The report also noted that the meme coin sector has not lost all of its funding. According to data cited by crypto.news, the total market capitalization of this category still exceeds $34 billion, with Dogecoin, Shiba Inu, and Pepe remaining the primary representatives.
However, this is not enough to end the debate over long-term value. At this stage, it only shows that meme coins still have active trading and liquidity, but there remains significant disagreement over whether there is sustainable demand for them.
Conditions are still lacking for a full recovery of altcoins.
The article suggests that for altcoins to experience a more complete recovery, several conditions typically need to occur simultaneously: Bitcoin's price stabilizes, its dominance declines, and overall risk appetite improves.
Before these conditions materialize, market funds may continue to favor Bitcoin and a few other large-cap tokens with strong liquidity. For altcoins and meme coins, it will remain difficult to escape the trend of divergence in the short term.