CMC Report Poor Overall Performance of New Tokens Listed on Four Major Exchanges This Year with Over Half Reporting Negative Returns

CMC Report Poor Overall Performance of New Tokens Listed on Four Major Exchanges This Year with Over Half Reporting Negative Returns

CMC Report Poor Overall Performance of New Tokens Listed on Four Major Exchanges This Year with Over Half Reporting Negative Returns

Cryptocurrency data platform CoinMarketCap released a report on Wednesday (3rd) analyzing the performance of new tokens listed on four major exchanges in 2024 to understand the current market environment and trends. The analysis pointed out 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.

The data compiled by CoinMarketCap also shows differences in the listing performance of these four exchanges. As of June 25th, Binance, OKX, Bybit, and Bitget listed 30, 33, 132, and 313 new tokens respectively this year, with the proportion 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, Bybit and Bitget listed the most tokens this year, with a focus on meme coins and related tracks. Although timely, this strategy also has drawbacks, as many tokens have shown negative returns after the hype has passed.

On the other hand, Binance adopted a different strategy, listing only about 30 new tokens this year, possibly “to take a more cautious approach to thoroughly investigate the projects before listing”. Despite this, Binance has also not been immune to the overall market conditions, with around half of the new tokens currently having a negative return on investment (ROI).

The report by CoinMarketCap also mentioned the overall weakness of the altcoin market. Data shows that since the beginning of 2024, altcoins, excluding Ethereum (ETH), have fallen by 17% compared to Bitcoin (BTC). The TOTAL3/BTC ratio calculated by CoinMarketCap, which compares the total market value of BTC with the top 125 cryptocurrencies (excluding BTC and ETH), also reflects this trend.

The report also pointed out several common problems faced by new projects, including high fully diluted valuation (FDV), low circulating supply, and limited liquidity. The research team observed that retail investors no longer want to be “blood bags” providing liquidity for large VC exits, and they are no longer actively participating in projects endorsed by large institutions. Instead, they are betting on some undervalued projects in the “cultural gambling arena”. 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, interest rate cuts by the Federal Reserve, and support for the cryptocurrency industry by US presidential candidates.