Altcoins in trouble: why 84% of new launches ended up underwater in 2025

The characteristic pattern of the cryptocurrency market is that bear cycles always cause the biggest losses for newcomers. The year 2025 was a vivid example of this process – thousands of investors watched as their altcoins catastrophically lost value.

The entire crypto ecosystem, except for Bitcoin and stablecoins, demonstrates chronic weakness. At the time of analysis, the total market capitalization of altcoins reached $1.77 trillion, but this figure told little about the true state of affairs in the sector.

How new capital gets trapped

Memento Research’s study revealed alarming statistics: over 84% of altcoins launched this year are trading below their initial Token Generation Event (TGE) prices. Only 15% of projects managed to preserve the potential to generate some profit for early entrants.

This pattern reflects the harsh realities of the market – a period of active capital outflow dominates throughout the cycle. Many new altcoins, which promised a revolution in the crypto sphere, instead became symbols of failure.

The overall decline affected the entire market

The problem extends far beyond just newcomers in the altcoin world. Data shows that about 60% of all tokens have fallen into the so-called “graveyard zone” – losing 70–99% of their value on charts.

Even the top-100 cryptocurrencies could not avoid dispersion. Among them, 88 altcoins showed no growth over the past three months. Only 11 assets remained above three-month lows, with an average return of about 324%. The leader of the group, Pippin [PIPPIN], earned 2,354%, while Sky [SKY] closed the list with a modest 2%.

Why investors do not give up

Despite pessimism and constant cash outflows, the investor environment finds new points of attraction. Selective capital allocation is mainly directed toward projects built on current market narratives.

Over the past week, the strongest narratives focused on privacy, social tokens, and staking services. These three directions showed an average growth of 11.1%, 10.2%, and 7.1%, respectively. Artemis data clearly indicates that disciplined selection still allows for profits even in tough times.

What lies ahead

The pattern of cautious investing, which has spread across the entire sector, will continue into 2026. Altcoins remain hostage to capital drought, but education has taught investors to focus on narratives and promising development directions rather than blindly buying everything in sight.

Next year is likely to further stratify the market – individual projects with proper positioning will have a chance, while the rest will continue to deteriorate downward.