Binance-listed coins and tokens gain exposure from activity searches

Binance remains the most active centralized exchange, with the potential to determine the most liquid tokens. The latest search trends show the allocations of liquidity. 

Top Binance tokens by search reflect both already trending assets and possible upcoming breakouts. The most searched tokens are not matching the most traded ones, but instead point to forming trends. 

The most searched tokens on Binance span several narratives, including leading blue chip assets, meme tokens, and utility tokens. Searches singled out the top blue chip assets, which make up to 80% of trading activity. DogWifHat (WIF) made it into the top 5 and turned into the biggest daily gainer with 27.6% daily growth. 

Highly active Binance searches also indicate the token’s trading is highly concentrated in a single trading pair. This activity profile allows for significant pumps in a short time, due to market depth and available liquidity. Top searched tokens on Binance are not always among the day’s top gainers, since the most liquid assets are not as volatile. 

Binance also surpassed most exchanges with more than 68M visits in July, surpassing the volumes of Coinbase and Bybit combined. Despite the popularity, not all Binance token picks were successful, especially tokens listed after April 2024. After the first correction of the year, liquidity became more scarce, slashing the expectations for an altcoin market. 

Traders choose low-risk, liquid assets

The crypto market of 2024 showed meme tokens could be used to offset other trades. Rolling over between trending memes was a way to find fast, risky gains. At the same time, utility tokens brought risks of selling by insiders and a constantly sliding price. 

The current conditions suggest investors may try moving their funds to leading blue chip assets, but especially Bitcoin (BTC) and Tether (USDT). 

Buy signal data shows a slide in both BTC and altcoin confidence, a sign to keep to a conservative trading strategy and allocate more funds to top assets or stablecoins. 

Almost all Binance trending tokens recovered, adding between 5% and 8% in the last 24 hours. The big exception was FET, which only added 0.17% to $0.85. The exact performance of trending tokens may shift, and some may revert to their baseline. 

Tokens trending on Binance are not guaranteed a successful performance. In up to 80% of cases, a Binance listing is a source of exit liquidity, especially for tokens with locked treasuries. 

In the case of WIF, Binance listing on March 5 led to a rally from $1.40 to $4.60, partially due to the favorable market conditions. Other tokens, like Book of Meme (BOME) also achieved high gains quickly after listing on Binance. BOME achieved its all-time high shortly after the launch of trading, but went on to drift sideways since then. 

Binance is also more skeptical of new listings, for now avoiding the Ethereum-based Neiro (NEIRO) token. The exchange is no stranger to listing memes, but is aware of potential insider wallet clusters that may sway the market price. 

Binance adds Kaspa (KAS) for mining revenues

One of the trending projects in 2024 that looked toward Binance was Kaspa (KAS). The project depends on mining and has grown its network over the past months. Recently, KAS was added to a shortlist for an eventual listing on Kraken. The KAS listing is still under review and is not guaranteed. 

Binance has so far avoided Kaspa, which may have a significant stash of mined coins waiting to be sold. Kaspa has attracted big corporate miners like Marathon Digital Holdings, with big players producing a big share of the blocks. Kaspa has been mined since 2021 and a Binance listing may help sell some of the mined assets. 

Users on Binance can share in Kaspa mining with a new zero-fee shared mining pool. However, the presence of mining does not guarantee a listing of the KAS token. Users that choose the pool will also earn their rewards in the form of stablecoins, and will not have a stash of KAS to sell later.

Cryptopolitan reporting by Hristina Vasileva