Token Launches Falter as Capital Flows into Traditional Markets

A recent analysis by DWF Labs shows that over 80% of cryptocurrency token launches in 2025 have fallen below their listing price. This is according to research based on Memento Research data covering hundreds of launches across major centralized and decentralized exchanges.

The study focused on structured launches tied to projects with actual products or protocols, excluding meme coins. DWF Labs managing partner Andrei Grachev told Cointelegraph that the pattern is consistent rather than a product of short-term volatility.

Grachev noted that most tokens reach a price peak within the first month, then trend downward as selling pressure accumulates from airdrops and early investor unlocks. The typical drawdowns are between 50% and 70% within 90 days of listing.

Despite this, capital formation in traditional markets tied to the sector strengthened. CryptoIPO fundraising reached approximately $14.6 billion in 2025, up sharply from the prior year, while merger and acquisition activity surpassed $42.5 billion, the highest level in five years.