How tokens stage a turnaround

Big picture first — what sets any token’s price? It’s still supply vs. demand. Issuance, unlocks and treasury sales push supply up; genuine usage, fees, incentives and investor interest pull demand up. Sentiment and news amplify both directions. If supply grows faster than believable demand, price sags; if demand outruns net new supply, price heals.

When a token is in trouble

Not all tokens keep up with market rallies and show clear warning signs:
▪️Persistent underperformance. The token continually lags behind major peers and even falls during periods when most altcoins rise. For example, Polygon’s token (formerly $MATIC, now $POL) lost roughly 93% of its value against Ethereum from Feb 2023 to mid-2025. Despite a crypto bull phase (with ETH at new highs).
▪️Breaking previous lows. The price sets new multi-year lows or stays below prior bear-market bottoms. In 2024–2025, $POL traded ~23% lower than its 2022 bear-market bottom around $0.30.
▪️Falling out of top ranks. Once a top-10 project, Polygon’s token slid to around #47 by market cap. Similarly, tokens like NEO or EOS that dominated in 2017–2018 but never recaptured past glory are often labeled “dino tokens” – stuck in long-term decline.
▪️Declining user base. An exodus of token holders is another red flag. In Polygon’s case, the migration from $MATIC to $POL coincided with a sharp drop in on-chain holders (reportedly from ~640k to ~106k, an 84% decrease) as many did not bother to swap over.
▪️Negative sentiment & excuse culture. If project leaders or community resort to excuses (“Our token will pump when X happens…”) but those catalysts come and go with no price impact, confidence erodes. In $POL’s scenario, excuses like “it will rally when Ethereum or Layer-2s pump” proved hollow, since ETH hit all-time highs and other L2 tokens boomed while $POL stagnated.

Polygon’s migration from MATIC to POL introduced ~2% annual inflation (≈200M POL/yr, split between validators and treasury). Supporters argue this funds the security and growth; critics point out that in a weak trend, new supply can outweigh demand.

Leadership also changed hands in June 2025 as co-founder Sandeep Nailwal took over the Foundation to “sharpen strategy,” while product milestones remain under the microscope. Takeaway for any token: if you add emissions, you need more usage or stronger sinks to balance it — otherwise the maths drips into price.

The anatomy of a turnaround

Fix the supply side:
▪️Inflation and unlocks. If a token issues more units than the market can absorb, it bleeds. Turnarounds often reduce or offset emissions. MakerDAO’s on-chain Smart Burn Engine is a clean case: it buys MKR with surplus DAI — a mechanical bid that counteracts dilution. Serious projects point users to unlock calendars (TokenUnlocks) so nobody gets blindsided by a cliff.
▪️Demand with real utility. Users should have reasons to hold or spend the token. Fee discounts, staking that secures something useful, priority access or protocol revenue share where allowed facilitate the use. If the token is only a “number go up” chip, demand fades when the party ends.
▪️Product and usage. Prices recover faster when a team ships on time and metrics confirm traction within active users, transactions, fees, TVL/volume. Analysts also track developer activity (it’s a decent proxy for “this thing keeps improving”) and on-chain flows (are whales depositing to exchanges to sell, or withdrawing to hold?).

Is this turnaround real?:
▪️Supply math. Is net issuance falling, flat, or rising? Any buyback/burn commitment funded by real revenue? Are big unlocks past or still ahead?
▪️Demand & utility. Can users save money, access features, or secure the network with the token? Are those features used weekly, not just in pitch decks?
▪️Delivery & traction. Are releases on time? Do fees, users, and volumes trend up? Is dev activity consistent (not bursty fluff)? Are whales accumulating onchain or cycling coins to exchanges?
▪️Leadership & communication. Is there a credible plan with dates — and do they report against it? Leadership resets help only if roadmaps hit.

Turnarounds aren’t magic. They’re maths + product + trust. Shrink or neutralize net supply, ship things people actually use, and communicate like adults. Tokens that do all three tend to heal and sometimes run. Tokens that don’t… usually don’t.

How EXMO Coin is a clear example of a turnaround

One of the healthiest signs for the turnaround is the team’s activity. EXM’s design proceeds with scheduled buybacks to reduce the circulating supply. This allows to keep the demand growing, which results supportive for the price.

On top of that, EXMO Coin has no in-built inflation. All tokens have already been issued and no new unlocks are planned for the near future. Furthermore, the utility scope is extremely large to support the exchange functionality. 

Day-to-day utility on the platform:
▪️Fee discounts via EXMO Premium paid in EXM. Active traders can lower maker/taker costs.
▪️Earn programs & tiers. EXM balance helps unlock better Fixed Earn conditions on selected assets.
▪️EXM-related events. EXMO constantly organises various seasonal tournaments and competitions based on holding or trading the native token. These events can have rewards that boost loyalty and present better conditions for future launchpools and airdrops.

Regional note: EEA residents don’t have access to Earn tiers (Basic only) or Premium levels. Perks vary by region—check in-app.

Overall, EXMO Coin demonstrates a proactive approach to keeping a token investable: no inflation to worry about, continuous burns, and increasing utility. These create a solid foundation for a turnaround.

If the broader market turns bullish and EXMO captures more traders, EXM could be poised for a strong run. The upcoming revised Whitepaper will be an important event – investors will be watching for new features that could amplify demand.

This article is for educational purposes only and should not be considered financial advice. Cryptocurrency investments involve risk, and you should always do your own research or consult a licensed financial advisor before making decisions.