Investor capital is shifting from new cryptocurrency tokens toward publicly listed crypto companies as most token launches face steep declines after listing. Research indicates over 80% of new tokens fall below their launch price, with drawdowns of 50-70% within 90 days. Meanwhile, crypto-related IPO fundraising surged to approximately $14.6 billion in 2025, and merger activity hit a five-year high above $42.5 billion, signaling a major rotation in market funds.
Investor capital increasingly flows from tokens into publicly listed crypto companies as new token launches struggle, according to market maker DWF Labs. Drawing on data covering hundreds of launches, the firm stated over 80% of projects fall below their token generation event price within roughly 90 days.
Typical post-listing drawdowns range between 50% and 70%. DWF Labs managing partner Andrei Grachev said this reflects a consistent pattern where most tokens peak within the first month before trending down.
In contrast, capital formation has strengthened in traditional markets. Fundraising for crypto-related initial public offerings reached about $14.6 billion in 2025, while merger and acquisition activity surpassed $42.5 billion, a five-year high.
Grachev described this as a capital rotation rather than a withdrawal. “If capital were simply leaving crypto, you wouldn’t see IPO raises jump 48x year-over-year,” he said.
The firm compared listed companies like Circle and eToro with tokenized projects using price-to-sales ratios. Public equities traded at higher multiples, which the firm argued is driven by greater accessibility for institutional investors.
WeFi CEO Maksym Sakharov confirmed the capital rotation, noting investors demand clearer ownership and rights when risk appetite tightens. “The money is going toward businesses that look like infrastructure because of custody, payments, settlement, brokerage, compliance and plumbing,” he said.
He added that listed crypto equities offer clearer evaluation through reporting standards and governance, fitting institutional rules. Grachev described this shift as structural, with serious protocols surviving while speculative launches face a harder environment.
