Cryptocurrency exchanges have been taking steps to streamline their offerings lately, and an unprecedented number of digital tokens are exiting. As Bitcoin regains interest and experiences a resurgence, it is ironic to witness many other tokens disappear from major platforms.
According to data compiled by Kaiko, the numbers are clear: 3,445 tokens or trading pairs are either inactive or about to be delisted. According to Bloomberg, this number is 15% higher than last year through comparative analysis, and even double the year before.
Major exchanges take the lead
The two biggest cryptocurrency exchanges, Coinbase Global Inc. and Binance, have been actively and proactively carrying out delisting activities. Surprisingly, more than 100 tokens have been delisted from these platforms this month alone.
Data from researcher CCData shows that Coinbase removed 80 pairs in October alone, an unmatched monthly figure this year. Meanwhile, another major player, OKX, has eliminated 172 tokens this year, and Coinbase is not far behind, eliminating 176 tokens.
These numbers may seem shocking, but they are not. Despite the huge number of available tokens, trading volumes on most exchanges have taken a major hit in the last year. More than 1.8 million tokens are available for trading on centralized and decentralized platforms.
According to Bloomberg, following events like the FTX scandal and subsequent bankruptcy, liquidity became scarce, and in response, many exchanges chose to centralize it towards more popular and user-favorite trading pairs.
Tokens delisted from cryptocurrency exchanges over the years. | Source: Bloomberg
Jacob Joseph, an analyst at CCData, revealed the outflow of cryptocurrencies. He said that the strategy of eliminating fragmented liquidity is aimed at improving the trading experience for users. This strategy can significantly reduce spread and slippage costs, making trading more favorable for users.
However, Bloomberg further revealed that external pressure is driving this trend. It is worth noting that regulatory intervention has played a role.
For example, the U.S. Securities and Exchange Commission (SEC) recently classified 19 tokens as unregistered securities, prompting exchanges like Coinbase and Binance to delist them, continuing to gain favor with regulators.
The bigger picture
While these delistings may be sudden, they fit in with the overall cryptocurrency market’s recovery trajectory. The 100 most important tokens have surged about 60% since December, rebounding from a 66% plunge last year.
According to Bloomberg, delisting is nothing new. In 2018, the crypto world also experienced a similar trend, with many tokens falling. This decline was mainly due to the failure of a large number of startups that relied on initial coin offerings (ICOs) and a global crackdown on suspicious activities and scams.
Kaiko analyst Riyad Carey added to the final sentiment, noting:
This is a result of the explosion in the number of tokens during the last bull run and the aggressive listing of these tokens. Many of these tokens/projects have disappeared or folded in the bear market, liquidity and trading volumes are at multi-year lows, and exchanges will delist pairs that do not generate sufficient fees.
Regardless of the starting point, the global cryptocurrency market has been on a bullish trend over the past 24 hours, gaining nearly 10% and now valued at over $1.2 trillion. This surge is mainly due to the recent rally in Bitcoin, which is likely to be approved by a spot Bitcoin exchange-traded fund (ETF). #加密货币 Exchanges #下架代币
