Majority of New Tokens Decline in Value Within a Year
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A recent analysis by CoinGecko indicates a concerning trend in the cryptocurrency market: roughly 90% of newly listed altcoins on major centralized exchanges see their values drop below the initial listing price within a year.
This data serves as a warning for retail investors who are often eager to engage with new token offerings on prominent trading platforms.
According to the findings, a mere 32% of new altcoin listings experience positive price movement immediately after their introduction on the top twelve centralized exchanges. This implies that nearly two-thirds of these tokens begin to lose value right from the start of their trading journey.
Examining specific exchanges, Upbit emerged as an outlier, boasting that 67% of its new listings showcased price increases within their first month. However, it’s worth noting that Upbit has one of the lowest frequencies of new listings when compared to its counterparts. Binance followed with a 50% positive performance, while Kraken and Gate recorded significantly lower rates at just 14%.
Despite these initial successes, the momentum appears short-lived. By the 30 to 59-day mark, the number of tokens maintaining positive performance plummets to around 25% on average across these exchanges.
The report highlights a trend where, over longer periods, the percentage of tokens retaining value declines steadily. Interestingly, Coinbase shows a unique pattern, as its listed tokens often regain traction after the six-month milestone.
Focusing on Upbit’s performance offers insight into the underlying issues. While the exchange had the best start, every altcoin listed there fell below its debut price by days 300 to 329. This sharp decline—from 67% to 0%—suggests that initial price surges were likely fueled by speculation and limited availability rather than genuine market demand.
Ultimately, the findings underscore a significant trend in the cryptocurrency landscape: short-lived hype surrounding fresh listings rarely translates into enduring value. Although certain tokens may capture investor interest initially, most struggle to maintain their momentum beyond the initial trading phase.
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