The cryptocurrency data platform CoinMarketCap released a report on Wednesday analyzing the performance of new tokens listed on four major exchanges in 2024 to understand the current market environment and trends. The analysis indicated that the overall performance of new tokens listed on exchanges such as Binance, OKX, Bybit, and Bitget this year has been poor, with over half of the new tokens showing negative returns since their initial listing.
Data compiled by CoinMarketCap also showed differences in the listing performance of these four exchanges. As of June 25th, Binance, OKX, Bybit, and Bitget have listed 30, 33, 132, and 313 new tokens respectively this year, with the percentage of new tokens with negative investment returns being 50%, 63.64%, 71.97%, and 80.19% respectively.
The CoinMarketCap research team believes that one of the reasons for the differences in listing performance among exchanges is their different listing strategies. For example, Bitget and Bybit listed the most tokens this year, focusing on meme coins and related categories, which the CMC report noted as a strategy to “actively cater to the market’s demand for high-volatility tokens this year”. However, many of these tokens have shown negative returns after the hype has subsided.
On the other hand, Binance adopted a different strategy, listing only about 30 new tokens this year, possibly in order to “take a more cautious approach to thoroughly investigate projects before listing”. Despite this approach, Binance has also not been immune to the overall market conditions, with about half of the new tokens currently showing negative return on investment (ROI).
The report from CoinMarketCap also mentioned the overall weakness in the altcoin market. Data showed that since the beginning of 2024, altcoins, excluding Ethereum (ETH), have dropped by 17% relative to Bitcoin (BTC). The report also highlighted the high fully diluted valuation (FDV), low circulating supply, and limited liquidity as common issues faced by new projects.
Despite concerns about the performance of altcoins, the CoinMarketCap research team believes that the current market conditions also provide investment opportunities for high-potential projects. The report mentioned potential opportunities that could trigger the altcoin season, including the supply impact after Bitcoin halving, the Federal Reserve’s interest rate cuts, and support for the cryptocurrency industry from US presidential candidates.
