In this analysis, I show you how listing on Binance exchange affects the prices of cryptocurrencies. Findings are relevant for crypto investors who are holding or planning to buy coins and tokens that have a chance of getting listed.
The Dataset
I analyzed a total of 26 coins and tokens that were listed on Binance over the last 1.5 years. Cryptocurrencies were listed on Binance announcement page on the day of the listing. Price data is from Coingecko.
Alright, now let’s dive into the data!
How Binance Listings Impact Prices of Cryptocurrencies
To get a better understanding of how a listing on Binance affects the prices of individual coins and tokens, I created the following chart.
The x-axis shows the 5 days before and after the listing of individual cryptocurrencies on Binance. Day 0 is the day of the listing. The y-axis shows the percentage price difference compared to the price on day 0.
As you can see, a majority of coins experienced a significant price increase in the days after the listing took place.
- The average price increase for all coins on the 1st day after the Binance listing analyzed was +41%.
- By the 3rd day the average price performance was +24%.
- On average, coins stayed 22 days in the positive after a listing before going into the negative again.
- The average max price in the 30 days after the listing was +73% higher than on the day of the listing.
In the next step, let’s zoom out a little. Below is the same chart on a different time scale.
Now the x-axis shows the 30 days before and after the Binance listing. I also assigned colors to the individual coins.
🟢 = coins and tokens that were listed on Binance during the last bull market.
🔴 = cryptocurrencies listed on Binance during the ongoing bear market.
It turns out that the underlying market condition has a major impact on how a cryptocurrency performs after a Binance listing.
Average price on 1st day after listing:
🟢: +49%🔴: +34%
Average price on 3rd day:
🟢: +34%🔴: +13%
Average days prices stayed above listing price after listing:
🟢: 18 days🔴: 8 days
💡Takeaways
Please note that my sample with a total of 26 coins and tokens is not very large. But here is what the data suggests:
- In most cases, a Binance listing does have a positive impact on a cryptocurrency's price.
- 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 2 weeks, almost half of all analyzed cryptocurrencies had lost their gains. Most coins with a negative price performance after 2 weeks were listed in the bear market.
- Coins listed in the last bull market had an overall better performance than coins listed during the ongoing bear market.
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