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The appearance of cryptocurrency on the Binance exchange adds an average of 41% to its value.
An analyst from Ren & Heinrich assessed the impact of listing on the Binance cryptocurrency exchange on the value of digital assets. He analyzed 26 coins and tokens registered on the platform over the past year and a half. As a result, it was found that the average increase in the value of cryptocurrencies on the first day after listing on Binance was 41%.
In his research, the analyst relied on data from the Coingecko platform. It is noted that the value of many coins has been actively growing for several days after the listing. For greater clarity, the analyst created a graph showing the impact of placing on Binance on the value of digital assets.
The x-axis shows 5 days before and after the listing of the studied cryptocurrencies on the Binance exchange, and 0 is the day the asset was listed on the platform. The y-axis shows the percentage difference in price compared to the value on day 0. The graph clearly shows the significant increase in the value of many coins in a few days after listing on the Binance exchange.
On average, all coins increased by 41% on the first day, but by the third day the increase was 24%. On average, coins remained in positive territory for 22 days after listing, after which they went negative. At the same time, the average maximum price within 30 days after the listing was 73% higher than on the day the cryptocurrency was listed on Binance.
The analyst created another chart. It shows on the x-axis 30 days before and after the listing on Binance. The green color shows the price changes of the cryptocurrencies that were placed on Binance during the so-called “bull market”, and the red color shows the “bear market”.
It turned out that the current state of the market has a significant impact on the rate of cryptocurrencies after their placement on the Binance exchange. The average value on the first day after listing for green-marked cryptocurrencies was 49%, while for red ones it was 34%. In three days, the increase for greens was 34%, and for reds - 13%. In addition, green-marked cryptocurrencies remained above the rate at the time of listing for an average of 18 days, and red ones for 8 days.
The results of the study suggest that in most cases, listing on Binance has a positive effect on the value of cryptocurrencies, with the largest increase observed on the first day after listing. It is also noted that for many coins and tokens, the positive momentum is short-lived. According to the analyst, after about two weeks, many cryptocurrencies lose their gain.