Binance – The Evolution of Tokens Over The Years, Jun 2025

The main topic of the report is the evolution of the role of tokens in the crypto industry over various stages, including the ICO era, DeFi Summer, and Beyond DeFi.

Key findings include that tokens have gone through cycles of enthusiasm, disappointment, and progress. The ICO era demonstrated the potential of tokens as a capital-raising tool despite motivation and regulatory compliance issues. During the DeFi Summer, tokens were used to align participant interests and create sustainable demand. Beyond DeFi, tokens were applied in new categories like Gaming and DePIN, but multi-token models did not always provide real utility. The influx of private funding influenced tokenomics decisions, focusing on valuation rather than experimentation. The current token landscape is characterized by a shift to higher float and lower FDV, along with a trend towards token buybacks to create artificial scarcity. The question of token utility remains open, and their role may be defined by regulation when tokens start being viewed as shares granting ownership rights.