The altcoin market in 2025 is witnessing a worrying situation: most of the newly launched tokens have seen a sharp decline in value shortly after being listed. According to data released by Ash – an analyst at Memento Research, this year's token generation events (TGE) have turned into a real "bloodbath" for investors.

More than 84% of New Altcoins Are Trading Below Their Launch Value

Out of a total of 118 token projects monitored from the beginning of 2025 to now, as many as 84.7% are trading with an FDV (Fully Diluted Valuation) lower than at TGE. This means that for every 5 tokens launched, nearly 4 tokens perform poorly after listing.

Notably, the median token in the study group has:

  • A 71% reduction in FDV

  • A 67% market cap reduction

Since the time of issuance. Only about 15% of tokens can maintain a price higher than the TGE price – an extremely modest figure.

A Series of 'Blockbuster' Projects Vanishing Over 90% of Their Value

Data also shows a severe decline in many projects that were once highly anticipated:

  • Syndicate (SYND): Initial FDV was nearly $940 million, now only about $59.8 million, equivalent to a reduction of -93.6%.

  • Animecoin (ANIME) and Berachain (BERA) – two projects heavily promoted at launch – also recorded FDV reductions of approximately -93%.

  • Other projects like Bio Protocol, Xterio, Lit Protocol, Yala, and Towns all experienced an FDV reduction of around -91% to -93%.

  • Even tokens with relatively good liquidity and trading volume like SuperVerse, Sahara AI, Holoworld, OG, and Newton Protocol are not immune to the general trend, with FDV reductions ranging from -80% to -85%.

High FDV at Launch – A Double-Edged Sword

One noticeable commonality is that projects launching with excessively high FDV, even approaching or exceeding the $1 billion mark, are undergoing severe corrections. The main reasons are:

  • Liquidity is insufficient to absorb supply

  • Market demand is weak after the initial FOMO phase

  • Future token unlock pressure

As speculative cash flows dry up, 'sky-high' valuations are quickly brought back to reality by the market, causing token prices to plummet.

Structural Issues in Tokenomics Design

According to Memento Research, this widespread collapse is not just a market cycle issue, but also reflects structural problems, including:

  • Unsustainable tokenomics design

  • Unreasonable allocation and unlock supply plan

  • Launch timing not suitable for market tolerance

  • Short-term profit expectations are too high, while real demand in the secondary market is weak

As a result, investor interest quickly declines right after TGE, leading to increasing selling pressure.

Conclusion: Investors Need to Be More Cautious with New Altcoins

The overall picture of altcoins launching in 2025 shows a clear reality: not every new token is an opportunity. In a context where most projects lose between 70% to over 90% of their value shortly after listing, chasing TGE, IDO, or media hype poses a significant risk.

For investors, the current phase requires:

  • Carefully evaluate FDV, tokenomics, and unlock schedule

  • Avoid FOMO mentality with overvalued projects

  • Prioritize risk management over short-term expectations of 'x10 - x20'

The altcoin market still has opportunities, but it is clearly no longer as easy as in previous cycles.