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.
Don’t miss a beat – sign up for crypto email alerts delivered straight to your inbox
Check out the price action
Follow us on ChirpingFacebook and Telegram
Navigate the daily Hodl mix
Check out the latest news headlines
Disclaimer: Opinions expressed in The Daily Hodl are not investment advice. Investors should do due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and that any losses you may incur are your own responsibility. The Daily Hodl does not advise the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: Mid-journey