New token valuations collapsed in 2025, with infrastructure and gaming projects suffering the steepest losses. The compression was widespread, but those two sectors bore the brunt of the downturn.
Infrastructure and gaming bear the brunt
Tokens tied to blockchain infrastructure — the layer-1s, scaling solutions, and middleware — saw their valuations shrink faster than any other category. Gaming tokens, once a high-flying corner of the market, followed close behind. The data shows a clear pattern: the projects that had commanded the highest premiums in earlier cycles were the ones that lost the most ground.
A shift from previous years
The 2025 compression marks a sharp reversal from the bull runs of 2023 and 2024, when new tokens routinely launched at lofty valuations and often climbed higher. This year, the opposite happened. Investors who bought into early-stage projects are sitting on heavy paper losses. The market is punishing the same sectors it once celebrated.
What's behind the numbers
The facts don't point to a single cause. No regulator, company, or analyst is quoted in the available data. What is clear is the magnitude: a huge compression, not a minor correction. The losses are concentrated, not evenly spread. Infrastructure and gaming are down the most, while other sectors — though also under pressure — have held up relatively better.
What comes next
For now, the market is waiting. No new token launches have been announced that might test the appetite for risk. The next batch of projects will face a much tougher fundraising environment. Whether the compression deepens or stabilizes depends on factors that remain outside the public record.
