CCData, a cryptos market data provider, found that different exchanges have different strategies. Since early 2023, the number of new tokens listed on Bybit has increased by 83% in exchanges with high trading volume. Coinbase, on the other hand, is the most conservative, with an increase of only 8.2% in the number of new tokens listed during the same period.
In the first half of this year, the number of new cryptos listed on major digital asset exchanges has increased, indicating a recovery trend in the crypto market.
According to CCData, a cryptocurrency market data provider, the cumulative number of new tokens listed on high-volume exchanges like Binance and Bybit has increased by 11.6%, reaching 2066. Low-volume exchanges like CoinJar and BTC Markets have seen nearly a 32% increase in the number of new token listings, with 488 listings.
These data come from centralized exchanges like Binance and Coinbase Global Inc. that hold users' assets, while the situation of decentralized exchanges like Uniswap, which have already issued over a million tokens like memecoins, is not counted.
There are three main reasons why new tokens are increasingly listed on centralized exchanges. Firstly, the rising cryptocurrency prices this year, with the market leader Bitcoin up by over 50%, have driven the wave of new listings on centralized exchanges. Secondly, US regulators approved exchange-traded funds (ETFs) for Bitcoin and Ethereum. Thirdly, the market expects that if Trump is re-elected as president in November, he may be more friendly towards cryptocurrencies, which enhances people's expectations of regulatory relaxation.
Cosmo Jiang, a portfolio manager at digital asset company Pantera Capital, said:
"I am optimistic about the change in political and regulatory attitudes toward cryptocurrencies, believing that it will bring positive changes. With the increase in regulatory transparency, tokens that are truly valuable and have strong fundamentals will stand out, while tokens that have no actual value, like memecoins, will be gradually eliminated."
According to data from research firm Kaiko, although the number of new tokens listed on centralized exchanges has significantly increased this year, it may still not reach the level of 2021.
2021 was the peak period of the crypto market, with a very high number of new tokens listed. The market was very active, with many new projects and tokens being listed one after another. In 2022, the crypto market experienced a series of scandals and bankruptcies, such as the collapse of FTX exchange, which severely dampened market confidence and led to a decrease of over 50% in the number of new token listings. Many projects were forced to suspend due to the market instability.
The situation continued to deteriorate in 2023, with the number of new token listings decreasing another 20% on the basis of 2022. The market is still digesting the negative impact of the previous year, and investors and project parties are more cautious. This year, although the market has rebounded and the number of new token listings has increased, the growth rate still has not reached the level of 2021.
Different exchanges have different strategies. CCData found that among high-volume exchanges, the number of new token listings on Bybit has increased by 83% since the beginning of this year. Coinbase is the most conservative, with a mere 8.2% increase in the number of new token listings during this period.
Dessislava Aubert, a senior analyst at Kaiko, said:
"The situation is more complicated this year. Binance is not as active in listing new tokens as before, but other platforms are increasing the number of new token listings. 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 has increased by 33% in June compared to December. By actively listing new tokens, Bybit has expanded the selection available for trading on the platform, attracting more traders and investment activities.
In contrast, the trading volume of the world's largest crypto exchange, Binance, has slightly decreased during the same period. The reason is that in November last year, Binance reached a settlement with the US Department of Justice and several other institutions, paying a fine of 4.3 billion US dollars. After this settlement, Binance tightened its requirements for new token listings, making it more difficult for projects and market makers to cooperate with it.