Over 80% of 2025 Crypto Token Launches Are Trading Below Listing Price, Reports DWF Labs
A recent analysis by market maker DWF Labs reveals that more than 80% of cryptocurrency token launches in 2025 have traded below their initial listing price, experiencing significant declines within the first three months of market debut. The research draws on comprehensive data from Memento Research, covering numerous launches across major centralized and decentralized exchanges.
Significant Price Underperformance Post-Launch
DWF Labs’ report highlights that typical drawdowns range between 50% and 70% within 90 days following the token generation event (TGE) — the point at which tokens are first made available on exchanges. Importantly, the study excluded meme coins from its scope, focusing instead on structured token launches linked to projects with actual products or operational protocols.
Andrei Grachev, managing partner at DWF Labs, explained to Cointelegraph that this downward trend is a persistent pattern rather than a temporary market fluctuation. He noted that most tokens tend to reach their peak price within the first month of listing, followed by a sustained decline driven primarily by selling pressure resulting from airdrops and early investor token unlocks.
“The TGE price is essentially the exchange-listed price set before launch,” Grachev said. “It represents the opening price for the token on the exchange, enabling us to assess the actual price movement influenced by volatility in the initial days.”
Broader Market Context: Capital Rotates, Not Retreats
Though token prices are underperforming, capital inflows into the crypto sector through traditional financial markets have actually increased. The report points to a sharp rise in CryptoIPO fundraising activities, which reached approximately $14.6 billion in 2025 — a significant jump from the previous year. Additionally, mergers and acquisitions within the sector surged beyond $42.5 billion, marking the highest level in five years.
Grachev characterizes these developments as a rotation of capital rather than an outright exit from the crypto industry.
Valuation Disparities Between Tokens and Public Crypto Companies
DWF Labs conducted a comparative valuation analysis between publicly listed crypto companies — including Circle, Gemini, eToro, Bullish, and Figure — and tokenized projects by examining trailing 12-month price-to-sales ratios. The analysis found that public equities traded at multiples between roughly 7 and 40 times sales, while comparable tokens showed ratios ranging from 2 to 16 times sales.
The firm attributes this valuation gap in part to accessibility factors. Many institutional investors, such as pension funds and endowments, primarily operate within regulated securities markets and often lack direct access to token markets. Furthermore, public shares can be incorporated into indexes and exchange-traded funds (ETFs), offering greater liquidity and institutional appeal.
Institutional Shift Towards Equity-Like Structures
Maksym Sakharov, co-founder and group CEO of WeFi, confirmed the ongoing capital rotation away from raw token launches. “When risk appetite tightens, investors don’t stop craving exposure, so they start demanding cleaner ownership, clearer disclosure, and a path to enforceable rights,” Sakharov told Cointelegraph. He emphasized that “equity wrappers” are increasingly attractive to institutional investors because they align with licensing requirements, audits, established partnerships, and reliable distribution channels — features that many pure token structures struggle to provide.
Grachev predicts that this shift is structural rather than cyclical, suggesting a permanent market bifurcation. Protocols delivering real revenue streams and boasting established user bases will sustain competitiveness, whereas speculative token launches lacking underlying activity will face an increasingly challenging environment amid the growing institutional preference for equity-style investments over outright token ownership.
Disclaimer
This article incorporates data from third-party sources for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making investment decisions. The views expressed by DWF Labs, WeFi, and other sources do not necessarily reflect those of CoinMarketCap.
By Ayesha Aziz, Crypto Writer and Environmental Scientist
Published on CoinMarketCap Crypto News, June 2026