The crypto market's appetite for new tokens has cooled dramatically this year. Valuations have compressed across the board, and the steepest losses are concentrated in two sectors: infrastructure and gaming. That's a stark reversal from the heady days when almost any fresh listing could bank on a quick pop.
Where the losses hit
Infrastructure tokens — the ones that power blockchains, data layers, and cross-chain tools — have seen the sharpest declines. Gaming tokens, which fuel play-to-earn economies and virtual item trades, aren't far behind. Both categories had been darlings of the last bull run, drawing heavy early investment and retail speculation.
But this year, the math changed. New projects in these spaces are coming to market at lower valuations, and even those that launched with fanfare have struggled to hold their ground. The compression isn't uniform across the whole token universe, but it's pronounced enough that the pattern is hard to miss.
What's driving the squeeze
The reasons are multiple. For one, the overall crypto market has matured. Investors are less willing to throw money at promises and more focused on actual usage and revenue. Infrastructure tokens, once seen as essential picks-and-shovels plays, now face a crowded field. Dozens of layer-1 and layer-2 networks compete for the same developers and users, and many of their native tokens have yet to prove they can generate sustainable demand.
Gaming tokens face a different problem. The play-to-earn boom of 2021-22 burned a lot of retail investors. Games that promised fun and profit often delivered neither, and token prices collapsed. The sector has been rebuilding, but the new crop of games is meeting a far more skeptical audience. Without proven retention or a real in-game economy, their tokens have little to stand on.
What this means for new launches
For teams preparing to launch in the second half of 2025, the message is clear: price it realistically. A token that would have commanded a $500 million fully diluted valuation two years ago might now struggle to justify $100 million. Founders who insist on sky-high numbers are finding themselves stuck in extended negotiations with exchanges and venture funds.
The compression also changes how projects think about their initial unlock schedules. In a falling market, locking up tokens for months or years isn't a selling point anymore — it's a red flag. Investors want to see that a team has the discipline to release supply gradually and the ability to generate real demand, not just hype.
There is a silver lining. Lower valuations mean that new projects have less distance to fall, and they can attract early believers without promising unrealistic returns. For infrastructure and gaming specifically, the shakeout could separate the durable projects from the vaporware. The ones that survive will likely have working products, engaged communities, and a clearer path to revenue.
But the correction is still ongoing. No one knows when the bottom will come, and the next few months will tell whether the compression deepens or stabilizes. For now, the market is sending a blunt message to every team with a token on the way: your valuation is what the market says it is, not what your white paper claims.
