Galaxy Data Shows 85% of 2025 Token Launches Trading Below Listing Price

Highlights:

• Galaxy Research finds that most 2025 token debuts are losing post-listing value.
• Crypto VC fundraising has fallen sharply from the record $17 billion raised in Q2 2022.
• Data shows that weaker liquidity is putting heavy pressure on new token launches.

Nearly 85% of tokens launched in 2025 are now trading below their issue price, according to the data shared by Galaxy Research. The figures point to a sharp shift in market dynamics and raise serious questions about the strength of the venture capital-driven token launch model.

A large majority of new tokens this year are underwater. Even projects backed by well-known venture capital firms are struggling to hold their launch valuations.

A few years ago, things were very different. If a project had a big-name VC behind it, people saw that as a strong green signal. It usually brought in early buyers and helped push the price up after launch. Many retail traders believed VC support meant the project was solid. That belief is no longer as strong today.

85% of token launches in 2025 are underwater.

VC backed deals barely break even and some are deep in the red.

Back in the day having a "Top VC" on the cap table was a huge catalyst, but not anymore. This chart from Galaxy Research tells the story.

In Q2 2022, crypto VCs… pic.twitter.com/HAdlXAYccA

— Edgy – The DeFi Edge 🗡️ (@thedefiedge) February 17, 2026

Crypto Venture Funding Momentum Cools After 2022 Peak

Galaxy Research’s chart highlights how much the environment has changed. In the second quarter of 2022, crypto venture firms raised nearly $17 billion in a single quarter. More than 80 new crypto-focused funds entered the market during that period. Limited partners were eager to gain exposure, so capital flowed quickly into almost any project with a crypto pitch deck. As a result, valuations climbed, and deals closed fast. Many startups secured funding long before they had working products, meaningful user bases, or steady revenue.

That fundraising boom is now casting a long shadow. Since 2022, venture capital returns in crypto have been moving lower. Return on investment has weakened year after year. Meanwhile, the number of new funds entering the space has dropped to a five-year low. Recent fundraising data highlights the slowdown. Last quarter, crypto VCs raised only about 12% of what they collected in Q2 2022. The difference is clear. Investor appetite has cooled, and limited partners seem far more cautious about committing fresh capital.

Investment Activity Continues but Relies on Older Capital

Recent data shows that venture firms invested $8.5 billion last quarter, up 84% quarter over quarter. At first glance, that suggests renewed activity. However, most of the deployed capital is not newly raised. It largely comes from funds secured during the 2022 peak. The total capital invested from 2023 through 2025 is roughly equal to what was raised in 2022 alone. This indicates that venture firms are still allocating capital, but fundraising momentum has not returned to prior highs.

VC-Backed Token Launch Model Faces Growing Pressure

The information also reveals that many of the token sales for VC-backed projects are only marginally profitable. Some are trading well into the red compared to their private sale prices. For several years, a typical formula had dominated the space. Projects would close a big round at a high price, sell a token with strong marketing, and then rely on retail support to prop up prices. This model is now faltering.

Retail buyers have become more risk-averse. There is less liquidity in the market than in previous cycles. Also, the fact that many projects have seen significant insider sales following a token sale has not helped. The mere presence of a reputable VC name on a project is no longer sufficient to propel prices higher.