Binance Listings Cause Crypto Assets to Grow 41% on Average: New Research

New research indicates that being listed on the top cryptocurrency exchange by trading volume, Binance causes cryptocurrencies to briefly jump 41% on average.

A new study by cryptocurrency researcher Ren & Heinrich analyzed 26 tokens listed on Binance over the past 18 months.

The study indicates that an average price increase of 41% occurred the first day after a listing. By the third day, the price increase tended to drop to 24%.

The long-term impact of a Binance listing appears to be less bullish. The Ren & Heinrich study also finds that assets remained positive for an average of 22 days before turning negative.

Ren & Heinrich explains,

“The strongest price increase usually occurs on the first day after the listing. How big this advantage 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, nearly half of all cryptocurrencies analyzed had lost their gains. Most of the coins with a negative price performance after two weeks have been trading in the bear market.”

Last month, Binance launched support for Magic (MAGIC), the token that powers Treasure DAO, a project that aims to be a decentralized video game console incorporating games and non-fungible tokens (NFTs). The altcoin quickly turned parabolic and posted gains of 82% after flotation.

The altcoin is now trading $0.476, down nearly 50% from its December 12 high of $0.932.

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