The Average Crypto Coin Is Worth Less Than in 2021

The rapid growth in the number of crypto tokens is significantly outpacing the value they generate, creating a major issue for the industry, according to Michael Ippolito. He shared his analysis in a series of posts on X, illustrating the situation with six charts. While total crypto market capitalization appears strong, a deeper look reveals a different picture.

The rapid growth in the number of crypto tokens is significantly outpacing the value they generate, creating a major issue for the industry, according to Michael Ippolito.

He shared his analysis in a series of posts on X, illustrating the situation with six charts. While total crypto market capitalization appears strong, a deeper look reveals a different picture.

What total market cap shows

The overall market cap chart remains elevated, suggesting the industry is in good shape. However, if Bitcoin and Ethereum are excluded, the situation becomes far less optimistic: the market falls back to levels seen five years ago.

This is because market capitalization depends on two factors: token supply and price. And supply is growing extremely fast.

A new token every day

The number of newly created tokens has surged. Over recent years, the industry has issued a massive number of new assets. Despite this, total market capitalization has remained relatively stable — meaning new supply is absorbing all growth.

• The average token is now only slightly above its 2020 level.
• Since 2021, it has lost around 50% of its value.

Looking purely at price performance (excluding dilution), the picture is even worse: the median return has dropped about 80% from peak levels.

Price disconnect from fundamentals

The most important point is the divergence between price and fundamentals. In 2021, token prices and blockchain revenues moved closely together. By 2025, blockchain revenues surged, but prices did not follow.

This indicates a loss of investor trust in tokens as value instruments. Previously, tokens reflected protocol activity — now that link is broken.

Michael Ippolito emphasizes that tokens are the core reason why 95% of participants entered the industry. They enable access to financial opportunities and democratize investing. If this issue is not resolved, the industry risks becoming merely a technical layer for traditional finance.

AI perspective

From a data-driven perspective, the crypto industry has gone through similar cycles of oversupply before. In 2017–2018, the ICO boom saw dozens of tokens launched daily with minimal utility. Today, the pattern is repeating at a higher level due to easier token creation.

A key technical factor is dilution. When supply grows faster than real protocol activity, even strong revenue growth cannot support prices.

As a result, the market continues experimenting with value distribution models. Which approach will ultimately prove sustainable remains to be seen.

Editor: Alyona Nabok

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