Token Issuance Market Struggles as Values Decline in 2025

2 mins mins

Key Points:

Main event, leadership changes, market impact, financial shifts, or expert insights.
71% FDV drop marks a steep decline.
Nearly 85% of projects below initial valuations.

A 2025 analysis by Ash from Memento Research indicates 84.7% of 118 tracked tokens have fully diluted valuations below their initial levels, challenging early investment prospects..

This widespread underperformance signals potential shifts in investor behavior, impacting token valuation strategies and market perceptions in the cryptocurrency sector.

Historical Reversal: 85% of TGEs Underperform in 2025

Did you know? In 2025, 84.7% of token projects performed poorly compared to their TGE valuations, a significant downturn lacking historical precedent due to the unique challenges posed by market conditions.

Historically, token generation events (TGEs) were seen as promising ventures for early investments. The 2025 data, however, suggests an unprecedented reversal, highlighting excessive supply against limited demand as a pressing issue. There has been discussion surrounding Deutsche Bank’s DAMA 2 Litepaper on Asset Tokenization, which offers insights into building more robust token markets.

Future financial and technological outcomes may include more stringent evaluation criteria for TGEs and greater focus on building robust market infrastructures. Without historical comparisons or expert opinions, this data stands as a notable marker in the evolving crypto market landscape. The importance of scalable and compliant infrastructure is emphasized by Nicola Lanteri, CEO of Memento Blockchain:

The future of digital asset servicing demands infrastructure that is not only scalable, but inherently compliant and interoperable.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.