New tokens are more likely to win if they find institutional investors

Most of the new tokens launched in 2024 have fared poorly compared to their predecessors. However, institutional investment has helped some succeed.

The market capitalization of all fungible tokens stands at more than $2 trillion as of Sept. 16. Of that total, altcoins — cryptocurrencies other than Bitcoin (BTC) and Ethereum (ETH) — have gained around $240 billion in combined market value over the last 12 months.

Despite this powerful overall growth, the majority of new tokens launched in 2024 have performed poorly and failed to gain sufficient traction. Why haven’t new tokens gained value in a manner similar to their predecessors? One word: attention. The market cap for altcoins is up because it comprises a stunning number of new tokens that were launched in 2024. However, this abundance of tokens has also greatly diluted attention for individual altcoins, causing fragmented liquidity that in turn produces weak price performance post-listing.

Increase in market capitalization for Bitcoin and Ethereum between September 2023 and September 2024. Source: Animoca Labs

Most of the new tokens launched in 2024 have fared poorly compared to their predecessors. However, institutional investment has helped some succeed.
The market capitalization of all fungible tokens stands at more than $2 trillion as of Sept. 16. Of that total, altcoins — cryptocurrencies other than Bitcoin (BTC) and Ethereum (ETH) — have gained around $240 billion in combined market value over the last 12 months.Despite this powerful overall growth, the majority of new tokens launched in 2024 have performed poorly and failed to gain sufficient traction. Why haven’t new tokens gained value in a manner similar to their predecessors? One word: attention. The market cap for altcoins is up because it comprises a stunning number of new tokens that were launched in 2024. However, this abundance of tokens has also greatly diluted attention for individual altcoins, causing fragmented liquidity that in turn produces weak price performance post-listing.Increase in market capitalization for Bitcoin and Ethereum between September 2023 and September 2024. Source: Animoca LabsRead more