Most 2025 token launches underwater within months

Investor appetite appears to be rotating away from newly launched tokens and toward publicly listed crypto companies, according to research from market maker DWF Labs.

Citing data from Memento Research covering hundreds of token launches across major exchanges, DWF said more than 80% of projects launched in 2025 are trading below their token generation event (TGE) price. Typical declines range from 50% to 70% within roughly 90 days of listing.

DWF Labs managing partner Andrei Grachev said the pattern is not simply the result of short-term volatility. In many cases, tokens peak within the first month before sustained selling pressure emerges.

“TGE price is the exchange-listed opening price,” Grachev said. “It gives a reference point to measure how volatility and supply dynamics affect the token in the first few days and weeks.”

The analysis focused on structured project launches tied to products or protocols, excluding memecoins. According to DWF, airdrops and early investor token unlocks are key drivers of post-listing supply, often weighing on prices once trading begins.

Source: DWF Ventures

IPO and M&A activity surges as capital rotates

While token performance has struggled, traditional capital markets tied to crypto have seen renewed strength. Crypto-related IPO fundraising reached about $14.6 billion in 2025, a sharp increase year over year. Meanwhile, merger and acquisition activity in the sector exceeded $42.5 billion, marking a five-year high.

Grachev described the trend as a rotation rather than an exit from crypto exposure.

“If capital were simply leaving the space, you wouldn’t see IPO raises jump dramatically or M&A reach multi-year highs,” he said.

DWF’s report compared trailing 12-month price-to-sales ratios for public crypto firms such as Circle, Gemini, eToro, Bullish and Figure with tokenized projects. Public equities traded at multiples between roughly 7x and 40x sales, while comparable tokens ranged from about 2x to 16x.

The firm argued that part of the valuation gap stems from accessibility. Institutional investors, including pension funds and endowments, are often limited to regulated securities markets. Public equities can also be included in stock indexes and exchange-traded funds, creating steady passive demand.

Institutional investors seek clarity and structure

Maksym Sakharov, co-founder and group CEO of WeFi, said the shift reflects tighter risk conditions rather than a rejection of crypto as a whole.

“When risk appetite tightens, investors still want exposure,” Sakharov said. “But they start demanding clearer ownership, enforceable rights and stronger disclosure.”

He added that capital is increasingly flowing toward companies providing infrastructure such as custody, payments, settlement and compliance. The “equity wrapper,” he said, aligns more easily with licensing, audits, partnerships and traditional distribution channels.

According to Sakharov, markets are beginning to separate tokens from the underlying businesses. A token without sustained user growth, transaction volume and revenue is often priced on expectations rather than fundamentals. By contrast, listed companies offer reporting standards, governance frameworks and legal claims that institutional portfolios can accommodate more easily.