CoinMarketCap, a cryptocurrency data platform, 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 this year on exchanges such as Binance, OKX, Bybit, and Bitget was poor, with over half of the new tokens experiencing 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 listed 30, 33, 132, and 313 new tokens respectively this year, with the proportion of new tokens with negative investment returns at 50%, 63.64%, 71.97%, and 80.19% on these exchanges.
The CoinMarketCap research team believes that one of the reasons for the differing listing performances 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 to cater to the market’s demand for high-volatility tokens. However, many of these tokens showed negative returns after the hype. On the other hand, Binance took a more cautious approach by listing only about 30 new tokens this year after thorough due diligence, yet still, around half of these new tokens are currently experiencing negative returns.
The report also mentioned the overall weakness in the altcoin market, with altcoins (excluding Ethereum) falling by 17% relative to Bitcoin since the beginning of 2024. The report attributed this to the current bullish sentiment being mainly driven by ETF and institutional assets, which has not been reflected in the altcoin market.
Furthermore, the report highlighted the common issues faced by new projects, including high fully diluted valuation (FDV), low circulating supply, and limited liquidity. The research team observed that retail investors seem less willing to participate in projects endorsed by major VCs, turning instead to meme coins for potential profits. Although the performance of altcoins is concerning, 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 an altcoin season, including the supply impact of Bitcoin halving, Federal Reserve interest rate cuts, and support for the cryptocurrency industry by US presidential candidates.