A recent report from Animoca Research showed that the average performance of tokens listed from January to September on five major exchanges recorded a drop of 40% to 70%.

The report analyzed 773 tokens listed on major exchanges, including Binance, Bitget, Bybit, KuCoin, and OKX. Among them, Binance had the fewest tokens listed, with a total of 44, while OKX followed a similar approach with 47 tokens at the end of Q3.

Source: Animoca Research

Bybit and KuCoin showed moderate listing demand, with 155 and 188 tokens, respectively. In contrast, Bitget pursued a more aggressive model by listing up to 339 tokens as of the end of September.

Notably, the report shows that March and April were peak months for listing activity, thanks to favorable market conditions driving this phenomenon.

Token performance

Tokens listed on Bybit performed the worst, with an average return and median of -50.2% and -70.4%, respectively. KuCoin closely followed with a median return of -66.1% and an average return of -48.3%. Meanwhile, tokens listed on OKX recorded the best resilience, with average and median performances of -27.3% and -40.6%, respectively.

Binance's listing performance shows a slightly better average than OKX, decreasing by 27% during the analysis period, while their median performance approached -50%. OKX recorded the highest profitable listing ratio, with 27.6% of 47 tokens recording positive returns as of September, although average and median returns remained low at 39.5% and 25.1%, respectively.

Seven tokens listed on Binance generated positive returns for investors, with an average of 108.4%, the highest during this period. Additionally, these tokens also showed the second-highest median increase of 53.5%. Tokens listed on Bitget and Bybit also recorded average returns exceeding 100%, reaching 101.4% and 103.7%, respectively. KuCoin ranked fourth in average returns, with 25 tokens recording an average return of 77.8%.

Supply impact

The report indicates that tokens with an average market capitalization/fully diluted value (MC/FDV) ratio recorded the highest valuations after listing on centralized exchanges. The MC/FDV ratio, which ranges from 0 to 1, is often used to measure the supply of a token relative to its total value.

Source: Animoca Research

A ratio of 0.5 indicates that the token has established a market presence and growth potential, and the report points out that these are key factors attracting investor interest. This explains why tokens listed on Binance recorded the best average returns, as they listed many tokens with an MC/FDV ratio ranging from 0.4 to 0.6.

#binance #Write2Win #btc #bnb #altscoin $ALT $SEI $AI