Binance’s 2024 token listings have mostly reported losses, starkly contrasting the generally positive performance in the year’s first half.
Despite rigorous selection processes ensuring only solid projects with robust technology and teams are listed, these new tokens have generally underperformed. The trading platform’s strategy includes various listing tiers to manage market risk, yet this precaution has not spurred expected gains.
Major Cryptocurrencies overshadow new tokens
Trading dynamics on Binance remain heavily weighted towards established cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Solana (SOL), which are predominantly traded against Tether (USDT).
These leading assets constitute approximately 80% of the trading volume on the exchange. In contrast, new and smaller tokens, representing just under 20% of all trades, suffer from inadequate liquidity, restricting their ability to secure and maintain gains.
Struggles of VC-backed and new tokens
Notably, several venture capital-backed tokens have become the poorest performers on the platform. High-profile projects like Wormhole (W) and AEVO have seen their values plummet by nearly 90% in recent months. These listings were once heralded as the top narratives of 2024, spanning sectors like AI, DeFi, the Toncoin ecosystem, and various Web3 initiatives. Despite the promising sectors, these tokens have faltered, plagued by issues like token unlocks and widespread selling.
On the flip side, despite being listed with cautionary advice, meme tokens like Pepe (PEPE) have dramatically outperformed VC-backed tokens. PEPE has surged approximately 800% year-to-date, even accounting for corrections. This trend underscores investor focus shifting from utility to branding and memes, combined with an interest in yield-generating protocols.
Spotlight on Jupiter (JUP) as an outperformer
One token that defies the general downtrend among new listings is Jupiter (JUP), part of the Solana ecosystem. JUP has maintained a positive trajectory over the past 12 months, currently priced at $0.89, though down from its peak at $1.80. The token’s limited circulation, with only 1.3 billion of its 10 billion supply released and 40% controlled by the development team, helps maintain its value. The lead developer has assured the community that these holdings will not be sold off precipitously, which has helped sustain market confidence.
Jupiter DEX has also launched a revenue-sharing program inspired by popular DeFi models, enhancing its appeal. With its perpetual DEX holding over $625 million in liquidity and its aggregator facilitating daily volumes of $712.12 million, Jupiter is poised as a comprehensive market solution for on-chain transactions.
The cryptocurrency landscape on Binance demonstrates a complex interplay of market dynamics. Investor sentiment is increasingly leaning towards tokens that promise utility and capture the cultural zeitgeist through memes and community engagement.