Binance listings cause crypto assets to rise an average of 41%
According to a new study conducted by Ren & Heinrich, Binance listing increases the price of a token by an average of 41%. The analyst noticed this pattern after tracking 26 tokens for 18 months.
However, the growth of the asset price decreases to 24% on day three. After about 22 days, the asset goes negative.
The analyst notes that the biggest price increase occurs on the first day of listing. Besides, how much the cost will increase and how long the growth will last largely depends on the project. For most tokens, the growth period is quite short. After about two weeks, some of the assets have already gone negative. However, it should be noted that most of these tokens were listed during the market decline.
Based on the research, the analyst suggested that Binance’s position as the world’s biggest exchange might mean that its individual token listings are now getting a lot more attention.
The analyst called this a “Binance Effect”, as it resembles a similar “Coinbase effect”. This term first appeared in 2021. Then a study conducted by Messari showed that token listings on Coinbase led to an increase of 91% in the first five days of trading.
Apparently, the “Binance effect” is a byproduct caused by the exchange’s trading volume. Last Thursday, Binance’s trading volume amounted to almost 7.5 billion dollars, which was about triple than on any other crypto exchange.
According to a study conducted by Arcane Research, Binance’s market share of Bitcoin trading volume reached 92% by the end of last year.
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