Why most new crypto tokens struggled to hold value in 2025
In 2025, most new crypto tokens lost value due to weak utility, misaligned distribution, and a risk-averse market.Summary
2025 proved to be a challenging year for new crypto tokens, with approximately 85% trading below their initial valuations, a stark contrast to the 2021 bull cycle. Factors contributing to this underperformance included a depressed altcoin market, Bitcoin's outperformance, and a tendency for quick profit-taking by traders. A key issue was the distribution of tokens through exchanges and airdrops, resulting in many holders having little connection to the underlying product. Furthermore, many tokens lacked clear utility, launching before establishing a strong user base or purpose. Looking ahead, teams are exploring usage-based distribution models to align incentives and prioritize actual product usage over speculative trading, signaling a shift towards more sustainable tokenomics and a focus on long-term value creation.
(Source：CoinDesk)