Foreign media reports that economist and trader Alex Kruger recently stated that while the crypto industry continues to expand, most tokens have not generated stable investment returns and have failed to prove themselves as a successful asset class. These remarks came as Bitcoin was still fluctuating around $67,000, a significant drop from its 2025 high.
Token returns and market confidence are under pressure.
Kruger argues that many crypto tokens lack practical use and a clear mechanism for value preservation. The continued dumping of tokens by some projects further diminishes returns for holders.
He also mentioned that the recent memecoin craze has consumed a significant amount of retail funds and dampened market confidence. Meanwhile, DeFi security incidents continue to increase. The report cited data showing that in April 2026 alone, hacker attacks caused losses exceeding $600 million.
A few sectors still see capital inflows
Despite his overall criticism of crypto assets, Kruger believes certain niches are still attracting investment. Privacy networks remain attractive as market demand for non-custodial, private stores of value grows.
He specifically mentioned Zcash, saying that its recent performance has outperformed Bitcoin, showing that even when the overall market is weak, some assets with clear functional positioning may still attract attention.
On-chain financial applications continue to expand
Kruger also emphasized that blockchain technology itself has not stagnated; growth is more evident in financial infrastructure than in speculative tokens.
- The supply of stablecoins is approaching $322 billion.
- The market is projected to trade approximately $60 billion this year.
- BlackRock's tokenization fund is approximately $2.5 billion.
He believes that the most robust on-chain applications currently are concentrated in stablecoins, tokenized assets, perpetual contracts, and prediction markets. These areas continue to attract user and institutional participation.
Bitcoin's short-term outlook weakens
In terms of market judgment, traders on prediction platforms are also becoming more conservative about Bitcoin's short-term trend. The report mentions that on platforms like Polymarket and Kalshi, the market has priced in a 30% probability that Bitcoin will fall below $50,000 by the end of the year.
This means that despite the continued expansion of on-chain financial applications, market disagreements regarding the price performance of crypto assets have not narrowed. The debate surrounding Bitcoin's future price fluctuation range remains a key focus for traders.
