Why Most New Crypto Tokens Struggled in 2025: A Market Reset

For much of 2025, a clear pattern emerged in the crypto market: newly launched tokens tended to lose value shortly after hitting the market. According to data from Memento Research, which tracked 118 token generation events (TGEs) during the year, around 85% of new tokens are now trading below their initial valuations. The median token has fallen more than 70%, underscoring how difficult 2025 was for token launches.

This trend marked a sharp contrast to the 2021 bull market, when high-profile tokens like MATIC, FTM and AVAX rallied strongly after launch. In 2025, however, the broader altcoin market remained weak following the collapse of the memecoin frenzy in February, with only a short-lived recovery in September. Bitcoin dominance stayed high, limiting capital rotation into riskier new crypto assets.

Even listings on major centralized exchanges such as Binance failed to generate sustained momentum. Instead of acting as bullish catalysts, exchange listings increasingly became sell-the-news events, as traders rushed to take quick profits. Many market participants avoided long-term positions, preferring short-term trades amid persistent downside pressure. Well-funded projects were not immune: Plasma’s XPL token dropped from a $2 debut to below $0.20, while Monad declined roughly 40% after its November launch.

A key problem was misaligned token distribution. Large airdrops, exchange allocation programs and direct sales maximized liquidity but flooded the market with holders who had little interest in using the underlying products. As a result, tokens quickly left their intended ecosystems and became tools for short-term speculation rather than long-term utility.

Another major issue was the lack of meaningful token use cases. Many projects issued tokens before real demand existed, hoping utility would follow. In a market focused on fundamentals, tokens without clear purpose struggled to retain value. Regulatory uncertainty in the U.S. also played a role, pushing teams to design stripped-down tokens with limited value capture to avoid legal risk.

The lesson from 2025 is not that crypto tokens are obsolete, but that poorly aligned tokens fail in tough markets. Going forward, projects are increasingly exploring usage-based distribution models that reward real engagement. The next phase of crypto growth is likely to favor tokens tied to genuine adoption, sustainable incentives and long-term utility rather than hype-driven launches.