A large percentage of newly-launched tokens are declining, raising investors’ concern about looking for new cryptocurrencies.
Binance is one of the largest and most popular exchanges globally. However, recent data show that over 80% of the tokens listed on the exchange are experiencing losses in terms of trading volume.
According to an analysis, over 80% of tokens listed on Binance in the last six months have declined. The recent development has raised concerns for investors seeking new cryptocurrencies.
Aside from the 31 tokens analyzed, only five coins have appreciated, including Memecoin (MEME), Ordi (ORDI), the Solana-based Jupiter (JUP) token, Jito (JTO), and Dogwifhat (WIF), according to pseudonymous crypto researcher Flow on May 17, on the X platform.
According to Flow, despite lacking a real user base, new tokens on Binance are listed with an average fully diluted valuation of over $4.2 billion, significantly limiting their upside potential.
Hard Times for Binance Tokens
Flow stated that tokens launched on the Binance platform are not investment-driven. He also noted that Binance tokens serve as exit liquidity for insiders, capitalizing on retail investors’ lack of access to quality early investment opportunities.
Furthermore, intergovernmental blockchain expert and author of NFT: From Zero to Hero Anndy Lian revealed that the fact that more than 80% of the newly listed tokens are in the red signals a challenging market environment.
“Many of the projects listed on Binance may have a longer period of growth; the growth may not be instant like the previous bull market,” he said.
Surge in Ordi Token Since its Launch
Interestingly, the Ordi token surged over 261% since its launch, making it the most profitable; Dogwifhat followed with a 117% increase.
Lian noted that memecoin growth was mainly propelled by retail interest, operating independently from the altcoin market segment.
“Since some of them are long-term hodl, many retail investors swarmed to memecoin. You can see that from the performance of MEME and WIF if you look at the trading volume. Six of the top trading coins are memes,” he mentioned.
To further highlight the meme coins craze, Pepe recorded a new all-time high above $0.000010 on May 13, following Keith Gill’s return to social media, known for his role in the 2021 GameStop short squeeze.
