The Effect of “Binance Listing” on Prices Examined

A new analysis published on Medium by Ren & Heinrich revealed how the news of listing on Binance has had an impact on cryptocurrencies. The analysis examined 26 cryptocurrencies listed on Binance over the past 1.5 years. As a result of the review, it was determined that there was an average of 41% increase with the listing of cryptocurrencies on Binance.

The X-axis in the chart below shows the 5 days before and after the listing of individual cryptocurrencies on Binance. Day zero is the day the listing is made. The y-axis shows the percentage price difference compared to the price on day 0. Analyzed in the chart, it is seen that the average price increase for all coins on the 1st day after the Binance listing, increased by 41%, and the average price performance increased by 24% on the third day.

It is observed that on average, coins remain positive for 22 days after a listing before turning negative again. According to the chart, the average maximum price for 30 days after listing is 73% higher than on the day of listing. The same graph is shown below on a longer time scale.

The X-axis shows the 30 days before and after Binance listing. The green color shows the coins and tokens listed on Binance during the last bull market. The red color represents cryptocurrencies listed on Binance during the ongoing bear market. The analysis also reveals that fundamental market conditions have a major impact on how a coin will perform once listed on Binance.

Average price on day 1 after listing:

  • Green: 49% up
  • Red: 34% up

3rd day average price:

  • Green: 34% up
  • Red: 13% up

Average number of days after listing that prices were above the listing price:

  • Green: 18 days
  • Red: 8 days

The analysis concluded that in most cases, Binance listing has a positive effect on the price of a coin. Accordingly, the strongest increase in price usually occurs on day 1 after listing. In the article, it is said that how big this increase is and how long the related coin can sustain this positive trend varies from project to project.

However, the positive momentum for most coins and tokens is reported to be relatively short-lived. About 2 weeks later, almost half of all analyzed cryptocurrencies reportedly lost their gains. It is also underlined that most of the coins with poor two-week price performance are listed in the bear market. It is also among the information in the analysis that the coins listed in the last bull market performed better than the coins listed in the ongoing bear market.

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