Market Expert Warns of Major Challenges Ahead for 99.99% of Altcoins

Amitis Capital’s Chief Investment Officer Chris Solarz has declared the end of the collective rise era for alternative cryptocurrencies, according to recent market reports. In his assessment of the current crypto landscape, which contains approximately 40 million tokens, Solarz predicts that 99.99% will eventually become worthless, with fewer than 100 tokens ultimately retaining meaningful value.

The veteran investment manager, who previously oversaw nearly $8 billion in asset allocations at investment advisory firm Cliffwater, highlighted significant liquidity challenges facing the market. According to his analysis, the crypto ecosystem will require at least $300 billion in fresh capital over the next three years simply to maintain current price levels, as the top 100 tokens face substantial unlocking events and mounting selling pressure.

Solarz emphasized a concerning market imbalance: the liquid token market accessible to institutional hedge funds amounts to only about $30 billion, while retail investors have largely redirected their attention toward meme coins. This shift has created what he describes as a “sword hanging overhead” - a scenario where there are insufficient buyers to absorb the increasing selling pressure across alternative cryptocurrencies.

This liquidity deficit explains why Solarz believes altcoins are unlikely to experience a significant bull market in the short term, contrasting with more optimistic market perspectives. His assessment points to fundamental structural challenges in the altcoin sector that could reshape investment strategies across digital asset markets.