For a year now, many cryptocurrency investors who acquired and locked their tokens have seen their assets plummet, causing their portfolios to take a hit. These assets locked in for a set period have fallen by an average of 50% compared with their initial value.
Such tokens as BLAST and SCR have dropped by more than 85% — a severe loss to holders. Many investors are now trapped, unable to sell until their lock periods expire, forcing them to watch their investments continue to deteriorate.
Meanwhile, the broader market has rallied since the April 2024 halving, with Bitcoin’s price surging by over 60%. This growing gap between locked tokens and market leaders has frustrated investors who chose to stake newer projects’ tokens rather than holding established cryptocurrencies.
The situation is likely to go from bad to worse in the coming months. Almost $40 billion in locked altcoins is about to be injected into the market. This massive injection could lead to strong selling pressure, which could likely trigger lower prices for many projects, particularly those already struggling to attract new investors.
This undermines the position of all secondary projects to the advantage of the safe havens, like Bitcoin, which are already well established on the market. Many analysts expect a flood of selling when these locked tokens become available, as disappointed holders rush to exit their positions.
In this strained context, the sustainability of projects is becoming a decisive factor. Initiatives lacking solid fundamentals and organic demand are already severely impacted, while only cryptocurrencies capable of justifying their usefulness and adoption by a real user base are likely to make it through 2025. This phase acts as a natural filter, distinguishing viable projects from those doomed to fail.
Throughout this period, the crisis has reinforced the dominance of conventional cryptocurrencies such as BTCUSD and ETHUSD pair. These two giants of the crypto universe have recently achieved an extraordinary level of growth. Their resilience in the face of market turbulence is attracting more and more capital, to the disadvantage of younger, riskier projects.
The bottom line
The heavy losses recorded on locked tokens have shaken confidence in many projects. The year 2025 is likely to mark a decisive stage in the crypto ecosystem, characterized by the survival of the fittest.
To succeed, a project must be robust and meet the highest standards of genuine utility supported by growing adoption. Nevertheless, some projects may still break out from the pack in the months ahead.
