In the first half of this year, the number of new cryptocurrency tokens listed on major digital asset exchanges increased, showing a warming trend in the cryptocurrency market.
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According to analysis by cryptocurrency market data provider CCData, exchanges with high trading volumes, such as Binance and Bybit, saw a cumulative increase of 11.6% in the number of new token listings, reaching 2,066. Exchanges with low trading volumes, such as CoinJar and BTC Markets, saw a nearly 32% increase in the number of new token listings, reaching 488.
The data comes from centralized exchanges like Binance and Coinbase Global Inc., which hold assets for users, and does not include decentralized exchanges like Uniswap, where more than a million memecoins have been issued this year.
There are three main reasons for the increase in the number of new tokens listed on centralized exchanges. First, the price of cryptocurrencies has risen this year, with the market leader Bitcoin rising by more than 50%, which has driven the listing boom of new tokens on centralized exchanges. Second, US regulators have approved exchange-traded funds (ETFs) for Bitcoin and Ethereum. Third, the market expects that if Trump is elected president in November, he may be more friendly to cryptocurrencies, which has strengthened people's expectations of relaxed regulations.
Cosmo Jiang, portfolio manager at digital asset firm Pantera Capital, said:
“I am optimistic that the shift in political and regulatory stance towards cryptocurrencies will lead to positive change. I hope that as regulatory clarity increases, tokens with real value and strong fundamentals will come to the fore, while those with no real value like memecoins will gradually fade away.”
While the number of new token listings on centralized exchanges has increased significantly this year, it may still fall short of 2021 levels, according to research firm Kaiko.
2021 was a peak year for the cryptocurrency market, with a very high number of new tokens listed. The market was extremely active that year, with many new projects and tokens listed. In 2022, the cryptocurrency market experienced a series of scandals and bankruptcies, such as the collapse of the FTX exchange. This led to a serious setback in market confidence, and the number of new token listings fell by more than 50%. Many projects were forced to shelve due to market instability.
The situation continued to deteriorate in 2023, with the number of listings decreasing by another 20% from 2022. The market is still digesting the negative impact of the previous year, and both investors and project owners are more cautious. This year, despite the market recovery and an increase in the number of new token listings, the growth rate still has not reached the level of 2021.
The strategies of different exchanges vary. CCData found that among exchanges with high trading volume, Bybit has increased the number of new token listings by 83% since the beginning of 2023. Coinbase is the most conservative, with the number of new token listings increasing by only 8.2% during the same period.
Dessislava Aubert, senior analyst at Kaiko, said:
“The situation is more complicated this year. Binance is not as active as before in listing new tokens, but the number of new tokens on other platforms is increasing. Since the market rebounded, the overall number of listings has increased, but the growth rate is not as fast as before.”
New tokens can usually increase the activity of spot trading. According to CCData, the trading volume of Bybit exchange increased by 33% in June compared with December. By actively listing new tokens, Bybit has more options for trading on the platform, thus attracting more traders and investment activities.
In contrast, Binance, the world's largest cryptocurrency exchange, saw a slight drop in trading volume during the same time period. The reason is that in November last year, Binance reached a settlement with the U.S. Department of Justice and several other agencies and paid a $4.3 billion fine. After this settlement, Binance tightened its listing requirements for new tokens, making it more difficult for projects and market makers to cooperate with it.
