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More than 80% of cryptocurrencies recently listed on Binance, the world’s largest cryptocurrency exchange in terms of trading volume, are in free fall. This trend has significant implications for investors seeking the newest opportunities in the cryptocurrency market.

Over the past six months, more than 80% of tokens listed on Binance have lost value since their listing. Out of 31 tokens analyzed, only five showed appreciation: Memecoin (MEME), Ordi (ORDI), Solana-based Jupiter (JUP), Jito (JTO) and Dogwifhat (WIF), according to a post by pseudonymous researcher Flow on 17 May on Twitter.

The fact that more than 80% of newly launched tokens are in the red signals a challenging market environment, according to Anndy Lian, intergovernmental blockchain expert and author of “NFT: From Zero to Hero.”

As Lian stated, the current state of the cryptocurrency market has been described as calm. Despite this, some altcoins are still on the rise.

Cryptocurrencies listed on Binance

The analyst explained that many of the projects listed on Binance may have a longer growth period, unlike the instantaneous growth seen in the previous bull market. Furthermore, new tokens on Binance arrive on the exchange with an average diluted market cap of over $4.2 billion, despite having no real user base. This can significantly limit its upside potential.

According to researcher Flow, tokens launched on Binance are often no longer investment vehicles. Instead, they represent exit liquidity for insiders who capitalize on the lack of retail access to quality early investment opportunities. This means that the appreciation potential of these tokens has already been practically exhausted before they are even made available to the general public.

Despite the general negative scenario, some memecoins have stood out. The Ordi token, for example, has seen an increase of more than 261% since its launch, while the controversial Dogwifhat has increased by more than 117%. Retail interest was the main factor driving the growth of these memecoins, which can operate independently of the altcoin market segment.

Lian highlighted that many retail investors have flocked to memecoins due to perceived long-term opportunities. This is evidenced by the performance of MEME and WIF, which are among the most traded cryptocurrencies.

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