The cryptocurrency market has seen a significant boom this year, with the number of recent tokens listed on major exchanges surpassing last year’s total in just the first six months.
According to Bloomberg report According to CCData’s data analysis, cryptocurrency prices rose by 11.6% on major platforms such as Binance and Bybit, bringing the total number of recent tokens introduced by these exchanges this year to around 2,066.
What is behind this surge in cryptocurrency quotes?
As Bloomberg emphasizes, one of the reasons for the enhance in the number of quotations is the general bull market in the sector, related to the enhance in cryptocurrency prices and favorable regulatory trends.
The report stated:
The surge in centralized exchanges has been fueled by this year’s rally in cryptocurrency prices, which has been fueled by the Bitcoin market benchmark, which has surged more than 50%. Expectations of greater regulatory freedom have been boosted by the U.S. approval of Bitcoin and Ether ETFs this year, along with growing speculation that Donald Trump will be more crypto-friendly if elected president in November.
The recent offerings span a wide range of tokens on centralized exchanges like Binance and Coinbase, where user assets are held. It’s worth noting that this growth doesn’t include the slew of meme coins that have flooded decentralized exchanges like Uniswap.
Cosmo Jiang of Pantera Capital was confident that improved regulations should facilitate draw the line between valuable tokens and lesser ones — meme coins. Jiang noted:
I am confident that the changing political and regulatory stance on cryptocurrencies will start to drive positive change. I hope that as regulatory clarity increases, tokens with real value tied to robust fundamentals will stand out, while those without real value, such as meme coins, will fall.
Startups are starting to take advantage of recent offers
Meanwhile, amid a regulatory thaw, startups are increasingly turning to tokens as funding mechanisms and to drive community engagement, reversing the cautious trend seen during the crypto winter of 2022.
Last year, the market was recovering from high-profile scandals and the collapse of huge companies such as FTX, which caused a drastic drop in the number of recent listings.
Even with this year’s boom, offerings on centralized platforms have yet to approach 2021 levels, Kaiko said. However, Bybit and other platforms are creating a number of recent offerings to accelerate trading, while Coinbase remains cautious about its offerings.
The report says this diversification of strategies across platforms is a positive sign that we are entering the next phase of a maturing market, where enthusiasm may be coupled with some caution.
Bybit’s approach to listing has helped volume grow by 33% since December, showing the impact of the recent token’s launch.
By contrast, Binance, the world’s largest cryptocurrency exchange by volume, saw its trading volume decline over the same period, likely reflecting a change in attitude following recent legal settlements and a subsequent tightening of listing processes.
Featured image created with DALL-E, chart from TradingView
