85% of Tokens Launched in 2025 Are Trading Below Their TGE Price – What’s Driving the Downturn?
- Why Are 85% of 2025 Tokens Underperforming?
- Is Venture Capital Losing Its Crypto Mojo?
- How Has Bitcoin’s Crash Impacted the Market?
- Who’s Selling—And Why?
- What Does This Mean for Crypto’s Future?
- FAQs: Your Burning Questions Answered
The cryptocurrency market in 2026 is painting a grim picture for newly launched tokens. A staggering 85% of tokens introduced in 2025 are now trading below their Token Generation Event (TGE) price, according to recent data from Galaxy Research. This trend highlights a significant shift in investor sentiment, with venture capital (VC) influence waning and real-world utility becoming the key survival factor for projects. Bitcoin’s sharp decline to $60,000 has further exacerbated the pressure, mirroring the 2022 LUNA crash. Meanwhile, exchanges like Binance and BTCC are seeing heavy sell-side volume, signaling a broader market retreat. Let’s dive into the data and unpack what’s behind this downturn.
Why Are 85% of 2025 Tokens Underperforming?
The HYPE around VC-backed crypto projects is fading fast. Back in Q2 2022, crypto venture funds raised nearly $17 billion in a single quarter, with over 80 new funds launching. Investors were throwing money at anything labeled "crypto." Fast forward to today, and the ROI for VC investments has declined yearly since that peak. The number of new funds has hit a five-year low, and recent quarterly fundraising is just 12% of 2022’s highs. Even the $8.5 billion invested last quarter—an 84% jump from the previous quarter—doesn’t change the fact that the old playbook of "raise, launch, and dump on retail" is dead.
Is Venture Capital Losing Its Crypto Mojo?
Galaxy Research points out that much of today’s investment activity is still fueled by capital raised back in 2022. The total invested from 2023 to 2025 roughly equals what was raised in that single banner year. The difference? Projects now need actual users and revenue to survive. Fewer "chain-hopping" startups are emerging, and teams are focusing more on product development than the next funding round. Even insider token sales have slowed—a sign that the easy-money era is over.
How Has Bitcoin’s Crash Impacted the Market?
Bitcoin’s 46% drop from its October 2023 all-time high has sent shockwaves through the crypto ecosystem. At one point, the decline exceeded 52%, making this the deepest correction of the current cycle. Long-term holders are feeling the pain, with the 7-day EMA of SOPR (Spent Output Profit Ratio) dipping below 1 for the first time in years—a pattern last seen during the LUNA collapse. This suggests we’re entering a deeper bear phase, compounded by worsening macro conditions and geopolitical tensions.
Who’s Selling—And Why?
CryptoQuant data reveals relentless sell-side pressure on major exchanges. Coinbase’s average monthly net Flow is negative $89 million, while Binance clocks in at -$147 million. The delta volume analysis, which showed steady demand during last summer’s rally, has flipped sharply negative. "This isn’t just profit-taking," notes a BTCC analyst. "It’s a full-scale risk-off move, with traders bailing on speculative assets across the board."
Source: CryptoQuant
What Does This Mean for Crypto’s Future?
The silver lining? The market is maturing. Projects with hollow promises are getting weeded out, while those solving real problems gain traction. As one industry veteran quipped, "The tide’s going out, and we’re seeing who’s been swimming naked." For investors, this means sharper due diligence—look beyond the VC pedigree and assess actual adoption metrics.
FAQs: Your Burning Questions Answered
Why are so many 2025 tokens below TGE price?
Overhyped launches met with cooling VC interest and retail skepticism. Many projects lacked sustainable utility.
Is this similar to past crypto winters?
In some ways—like the LUNA crash—but today’s downturn combines cyclical factors with structural shifts in funding models.
Should I buy the dip?
This article does not constitute investment advice. Historically, deep corrections precede new cycles, but each market behaves differently.
