Altcoins’ 2025 struggle – New token launches fell below TGE prices but…

The bear market phase is typically a period during which capital flight dominates and asset prices trend lower. That pattern played out clearly across the altcoin market this year.

While the average decline across the altcoin sector stands at roughly 28% by market capitalization, data revealed that tokens launched in 2025 faced much steeper losses. Existing altcoins were not spared either, as selling pressure extended across the board.

As the year winds down, the key question remains – Will 2026 be a better year for altcoins?

New altcoins suffer more than most…

Market conditions proved unfavorable for newly launched altcoins, as many slid well below their launch prices. More specifically, their token generation event (TGE) levels.

Altcoins refer to all cryptocurrencies other than Bitcoin and stablecoins. According to TradingView data, these assets accounted for a combined market capitalization of approximately $1.77 trillion, at the time of writing.

A report from Memento Research revealed that 84.73% of altcoins that met this criterion traded below their TGE prices. On the contrary, only 15.30% remained above their TGE levels, maintaining some degree of profitability for traders who entered at launch.

More broadly, the data suggested that investing in newly launched altcoins was largely unprofitable throughout 2025. Given the persistence of the ongoing bear market phase, this trend could extend into 2026.

Was the wider altcoin market spared?

Newly launched altcoins took the hardest hit, but the broader asset market also suffered significant losses, leaving most investors in the red.

In fact, a majority of tokens have now entered what is described as the “graveyard zone.” Technically, this means that around 60% of tokens are down between 70% and 99% on the price charts.

This weakness extends even to the top 100 cryptocurrencies. Among them, 88 altcoins failed to see any profitability over the past three months. Only 11 altcoins managed to stay above their three-month lows during this period.

At press time, the average performance of these 11 profitable assets stood at approximately 324%. Pippin [PIPPIN] led the group with gains of 2,354%, while Sky [SKY] ranked as the weakest performer with gains of just over 2%.

Narrative remains primary driver

Despite the ongoing capital flight from altcoins, investors continue to allocate selectively based on prevailing narratives.

In this context, a narrative refers to market segments that attract capital because investors expect them to outperform the broader market.

Over the last seven days, the most dominant narratives included privacy, social tokens, and staking services. These categories saw weighted average gains of 11.1%, 10.2%, and 7.1%, respectively.

This pattern is likely to persist into 2026. Especially as investors remain cautious and continue to favor narrative-driven assets that offer relatively stronger return potential in uncertain market conditions.

Final Thoughts

• New altcoins fell sharply below their Token Generation Event (TGE) prices as market sentiment remained deeply bearish.
• 2025 saw the broader altcoin market decline heavily.