Binance Listing Effect on Cryptocurrency Price

This article analyzes the effect of Binance listings on a cryptocurrency’s price. During 2018, Binance has generally been the first or second highest overall volume cryptocurrency exchange in the world. Such high volume can increase demand for a cryptocurrency and thus increase the price of the cryptocurrency, especially on the day of the Binance listing.

General findings:

  • The average maximum profit potential from Binance listings is 109%.
  • The average percentage price change from a week before Binance listing to a week after Binance listing is 32%.
  • All 15 cryptocurrencies increased in value on the day of Binance listing compared to the day before Binance listing.
  • 13 of the 15 cryptocurrencies decreased in value on the day after Binance listing. Profits are usually highest buying before Binance listing and selling on the same day of Binance listing.
  • 8 of the 15 cryptocurrencies maintained an increase in value from a week before Binance listing to a week after Binance listing. 7 of the 15 cryptocurrencies decreased in value from a week before Binance listing to a week after Binance listing. This could be attributed to overall crypto market sentiment. Cryptocurrencies generally maintained the most value over the two week period when Bitcoin prices were rising or stable.

Data analysis:

The data contains fifteen cryptocurrencies listed on Binance from February 2018 to May 2018. There are five data price points for each cryptocurrency: 1 week before listing; 1 day before listing; day of listing; 1 day after listing; 1 week after listing. There are two data percentage points for each cryptocurrency: Maximum % Gain (how much total profit could be made from buying low and selling high) and; 2 Week % Change (the difference in price from 1 week before listing and 1 week after listing). Each data set contains a Bitcoin 2 week change percentage to help people identify the overall crypto market sentiment during the 2 week period. Each data price point uses the cryptocurrency daily high price.

 

About Max Ambrose

Founder of Astral Crypto.
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