85% of 2025 crypto tokens trade below launch price

85% of tokens launched in 2025 now trade below their initial price, even those with VC backing. VC influence is waning as projects shift focus to real users and revenue.

In 2026, the crypto market faces a notable downturn for newly launched tokens. Approximately 85% of tokens introduced in 2025 are now trading below their initial prices, including those backed by leading venture capital funds. This marks a shift, as VC support was once seen as a strong indicator of post-launch success. Data from Galaxy Research and analysts like Edgy reveal that the traditional model—raising capital, launching a token, and relying on VC demand—has lost its effectiveness. Venture capital fundraising has dropped sharply, with last quarter’s figures at just 12% of the Q2 2022 peak. The number of new funds has also hit a five-year low, and most current investments stem from capital raised in 2022, underscoring a lack of new inflows. As a result, projects are now focusing on building real products, attracting genuine users, and generating revenue. The influence of VC backing continues to diminish, and broader market pressures have also led to declines in major cryptocurrencies like Bitcoin.