(Bloomberg) -- In another sign that crypto is back in vogue, more new tokens have been listed on major digital-asset exchanges in the first half of this year than in all of 2023.
On higher-volume exchanges including Binance and Bybit, coin listings are cumulatively up 11.6 per cent to 2,066 in the first six months of the year, according an analysis of select exchanges that CCData conducted for Bloomberg. Among a handful of lower-volume exchanges including CoinJar and BTC Markets, listings are up nearly 32 per cent to 488, the researcher found.
The tally is from so-called centralized exchanges such as Binance or Coinbase Global Inc. that hold custody of users’ assets. The figure doesn’t include the deluge of memecoins that are inspired by internet memes or trends that trade on decentralized exchanges such as Uniswap that allow users to maintain control over their assets. More than one million memecoins have been issued already this year.
The surge in listings on centralized exchanges has been driven by this year’s rally in crypto prices, which has been led by market bellwether Bitcoin’s more than 50 per cent increase. Expectations for more regulatory leeway have been bolstered by the U.S. approval of Bitcoin and Ether ETFs this year, along with growing speculation that Donald Trump will by more crypto-friendly if he is elected president in November.
“I am optimistic that the shifting political and regulatory stance toward crypto starts driving positive change,” said Cosmo Jiang, a portfolio manager at digital-asset firm Pantera Capital. “Specifically, I hope that with regulatory clarity increasing, tokens with real value tied to strong fundamentals will stand out, and those without real value such as memecoins will lose out.”
Startups have also once again begun launching tokens, from memecoins to coins used for gaming, as a way to finance operations or expand community support. That’s a big change from 2022, when crypto markets crashed following a series of scandals and bankruptcies such as the collapse of the FTX exchange.
The spike in new listings on centralized exchanges is still likely smaller than it was in 2021, according to researcher Kaiko. In 2022, listings were down by more than 50%, and fell another 20 per cent last year, Kaiko said.
Bybit, which has seen its trading volume and market share surge, has been the most prolific lister among higher-volume exchanges, with listings up 83 per cent since the start of 2023, CCData found. Coinbase has been the most conservative, with its listings up 8.2 per cent over the same period, CCData said.
“So far this year, we have a mixed bag, with Binance listing less aggressively than before, but other platforms are stepping up new listings,” said Dessislava Aubert, senior analyst at Kaiko. “As a result, the overall number of listings has increased since the start of the rally, but not as fast as during previous cycles.”
The new tokens usually help to increase spot trading activity. Bybit’s trading volume in June was 33 per cent higher than in December, according to CCData. Binance, the world’s biggest crypto exchange, saw trading volume decreased slightly over the same time.
Binance settled charges with the U.S. Department of Justice and several other agencies in November, and agreed to a US$4.3 billion fine. It’s since tightened listing requirements, and made it tougher for projects and market makers to work with the exchange.
©2024 Bloomberg L.P.