Newly launched tokens, including high-profile assets like TRUMP and MELANIA, are experiencing severe price collapse shortly after their market debut. Fresh data from Tokenomist reveals a devastating trend where aggressive increases in circulating supply have led to widespread value destruction, leaving early investors facing significant losses.
Aggressive Supply Expansion Fuels Price Collapse
A primary driver of this market distress is the rapid and uncontrolled expansion of circulating token supply, dubbed "emission shock." Tokenomist data indicates that for many Q1 launches, circulating float aggressively doubled within three months, unleashing continuous sell-pressure that has pushed prices down by a staggering 86% to 99% since launch. For example, Layer's circulating float surged from 21% to 31%, correlating with a nearly 99.7% price drop, while Melania saw its float expand from 25% to 55%, leading to a 98% value depreciation.
Liquidity Shifts and Tokenomics Challenges
This widespread collapse is not solely attributable to individual project quality but is exacerbated by a broader market shift. Capital is increasingly gravitating towards established majors like Bitcoin and Ethereum, as well as Real-World Asset (RWA) tokens, leaving newer projects with insufficient structural demand to absorb aggressive new supply. Critically, even tokens with genuine utility, such as GoPlus Security—linked to meaningful cybersecurity infrastructure—have not been immune, plummeting over 92%. This highlights that poor tokenomics, ill-conceived vesting schedules, and aggressive post-launch float increases are overriding factors, proving that practical utility alone cannot guarantee token value in the face of unsustainable emission schedules. Ultimately, the findings underscore a critical need for new projects to prioritize sustainable token design, tightly controlled emissions, and thoughtful supply management. Without these foundational elements, newly issued assets will remain vulnerable to severe emission shock and prolonged price suppression, regardless of their underlying product fundamentals.
