Prices told one story in 2025. Fundamentals told another.
Prices told one story in 2025. Fundamentals told another.
Tokens had a tough year: the average return for projects that started 2025 in the top 100 (ex memecoins) was -51%, while more than half the tokens declined by more than 72%. Only 8 tokens actually went up.
On the other hand, fundamentals meaningfully improved in most cases. Institutions continued to adopt blockchain technology, stablecoin volumes grew, and high-performing DeFi projects collected huge amounts of fees. On average, fees in native units jumped 66%, users increased 48%, and transactions rose 46%.
The data illustrates that price action dramatically underperformed actual shifts in fundamental metrics across the board, with growth in fees, users, transactions, and other KPIs showing far more strength than price changes imply.
As we have written many times before: as institutions step in to allocate, digital assets will be underwritten more like traditional businesses, and valuations will increasingly coalesce around fundamentals.
Until then, the disconnect between price action and the real data is exactly where long-term opportunity lives.
** The information herein is for general information purposes only and is not investment advice. An investment in digital assets involves a high degree of risk including the loss of principal. Past performance is no guarantee of future results.
