Binance’s Impact on Cryptocurrency Prices
Despite the new additions to the trading offerings, the listed coins have seen volatile movements during the day. Despite the new updates to the trading offerings, the listed coins have seen varying daily fluctuations.
Historically, the impact of cryptocurrency listings on major exchanges like Binance is known to result in a significant increase in their prices, which is known as the “Binance Effect”. According to an analysis by Ren & Heinrich, token prices have risen by 73% in the first 30 days after listing on Binance, with a 41% increase on the first day of listing.
This effect is attributed to the huge trading volume on the platform, which attracts the attention of traders and investors towards the newly listed coins. However, investors should be cautious, as these increases may be temporary, and may be followed by price corrections.