It has been determined that cryptocurrencies, which received the Binance listing, the world’s largest cryptocurrency exchange, experienced an average increase of 41%.
Cryptocurrency investor and researcher Ren & Henry In a recent analysis byBinance Effect” concept was introduced. Total 26 cryptocurrencies for 18 months In the analysis followed, the effect of Binance listing on projects was revealed. Cryptocurrency market 75% of Within the first 24 hours of a cryptocurrency listed on Binance, 41% reported to have risen. However, on the third day of listing, approximately 24%There was an increase of .
Before altcoins turn negative again after a listing on average 22 days remained at a positive price. The high volumes of Binance were cited as the main source of this effect. Ren & Heinrich summed it up as follows:
Binance listing generally has a positive effect on the price of a cryptocurrency.
Despite the instant price increase, the positive momentumrelatively short-lived” was stated. About half of the projects are without listing after 2 weeks lost their earnings.
Bull-Bear Market Difference
In addition, listings during the bull season were reported to have a stronger impact than those during the bear season.
Average price on day 1 after listing:
- Taurus: up 49%
- Bear: 34% up
Average Price on Day 3 after listing:
- Taurus: 34% up
- Bear: 13% up
Average number of days after listing that prices were above the listing price:
- Taurus: 18 days
- Bear: 8 days
On the other hand, a similar study will be conducted in 2021. coinbase It was made for. Crypto analytics firm in April Messari According to research by Coinbase, the first five days of cryptocurrencies listed on Coinbase. 91%It was revealed that there was a price increase of .
The volume shifting from Coinbase to Binance since 2021 marks a transformation in the industry, according to the expert report:
It looks like we can expect a greater upside reaction from Binance listings in 2023, confirming the shift from the ‘Coinbase effect’ to the ‘Binance effect’.