Recent market cycles have seen an acceleration in exchange listings as the number of centralized exchanges has doubled. Despite the loss of enthusiasm for altcoins, listings grew.
With the addition of MEXC, the number of listings on the exchange has doubled compared to previous market cycles. MEXC was willing to offer new tokens to the list almost immediately, whereas previously there was a months-long wait for tokens.
Although listings often resulted in losses, they still provided the market with a wide selection of new assets. Based on Cryptorank data, the list has arrived 5.35K New tokens will be generated in just 700 days, compared to 1,444 days in the previous cycle.
Returns on new listings remained relatively low, with a median of 0.3x. Some assets only started losing money once they became tradable on centralized exchanges.
Why has stock exchange listing accelerated?
In the last bullish cycle, exchange listings finally materialized after several months of preparation. The new token also had more diverse technical requirements.
During this market cycle, token launches and listings were concentrated in specific ecosystems. $BNB Chain is one of the top venues and has increased the number of listings through Binance Alpha and other special incentives.
Previous market cycles have also included VC-backed tokens waiting for the right time to go public.
On the exchange side, insider and whale holdings have accelerated new listings to offer more attractive assets as traders become skeptical of coins and tokens from the early bull market.
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CEX also attempted to compete with decentralized markets that provide instant liquidity. As a result, centralized exchanges have reconsidered their listing procedures, especially for curated or incubated token projects.
$BNB The chain became one of the leaders in new listings.
$BNB Chain is one of the leaders in initial public offerings, which are often done in partnership with MEXC. The network boosted Four.meme’s list of meme tokens and additional utility projects.
Meme tokens were also one of the leading types of assets to increase raw listings and overall transactions.
Binance has had the most token transactions in the past year after regularly listing new assets. |Source: Dune Analytics
The expansion of new token listings has also raised the issue of risky market makers. For each project, we selected market makers that have the potential to disrupt the flow of trade. Unlike DEX tokens, tokens listed on centralized exchanges can expect a more concentrated volume and eventual pump. However, some market makers tried to create the perfect conditions for a crash.
As a result, Binance issued a new advisory regarding the token project, requiring disclosure. market maker and its holdings.
‘Healthy market formation must support two-sided liquidity. A pattern of persistent sell-side orders without corresponding buy-side activity can contribute to price pressure and undermine an orderly market.The Binance team explained.
Binance advised projects launching tokens to ensure market makers are aligned with their goals and not to sell tokens or create unilateral liquidity. The proliferation of newly listed tokens has shed light on the activities of dishonest market makers, or teams trying to sell tokens too aggressively on exchanges.
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