New research indicates being listed on the top crypto exchange by trading volume Binance causes crypto assets to briefly rally by 41% on average.
A new study from the crypto researcher Ren & Heinrich analyzed 26 tokens that were listed on Binance in the past 18 months.
The study indicates that a 41% average price increase happened on the first day after a listing. By the third day, that price increase tended to drop to 24%.
The long-term impact of a Binance listing appears to be less bullish. Ren & Heinrich’s study also notes that assets stayed positive for an average of 22 days before going negative.
Explains Ren & Heinrich,
“The strongest increase in price usually happens on the 1st day after the listing. How big this plus is and how long the respective coin can maintain this positive trend varies from project to project.
For most coins and tokens, however, the positive momentum is relatively short-lived. After about two weeks, almost half of all analyzed cryptocurrencies had lost their gains. Most coins with a negative price performance after two weeks were listed in the bear market.”
Last month, Binance rolled out support for Magic (MAGIC), the token that powers Treasure DAO, a project that aims to be a decentralized video game console that incorporates games and non-fungible tokens (NFTs). The altcoin immediately went parabolic and recorded gains of 82% after the listing.
The altcoin is now trading at $0.476, down nearly 50% from its December 12th high of $0.932.
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Source: https://dailyhodl.com/2023/01/07/binance-listings-cause-crypto-assets-to-spike-an-average-of-41-new-research/