Recently, everyone should have clearly felt that Binance's listing pace has become particularly fast—now at least 20 new coins are launched every month, which adds up to at least 200 new coins a year. It is worth noting that before 2023, the total number of coins listed by Binance was less than 300; now, in less than a year, the number of new coins listed is almost catching up to the total of the past several years, and this speed is truly astonishing.
But if you think about it carefully, can any of these newly listed coins compare to Bitcoin (BTC) or Ethereum (ETH)? They are not even in the same league. Mainstream coins like BTC and ETH have major financial institutions like BlackRock, Fidelity, and MicroStrategy buying into them with real money, supported by institutional funds and a solid market foundation and recognition. But what about all these continuously listed altcoins? They have been primarily traded by ordinary retail investors (to put it bluntly, 'chives'), with no significant funds willing to support them in the long term.
More critically, the increasing number of altcoins is not a good thing for the market and retail investors. The amount of capital in the market is limited, and with each new coin that comes up, a portion of that capital is diverted. Furthermore, most altcoins lack real value and exhibit high volatility, making it easy for retail investors to get trapped or have to sell at a loss. As a result, retail investors lose money faster and more severely, with their available funds dwindling, leading to continuous 'blood loss' in the market, and the entire altcoin market becomes increasingly lackluster.
Worse still, this situation can create a vicious cycle: with less capital in the market, fewer people are willing to enter, and project teams need to lower their costs to get coins listed, which will naturally drive down Binance's listing fees. When listing fees decrease, the barriers to entry are lowered, and some weak projects, even those posing as 'pyramid schemes,' will seize the opportunity to enter the market. Once these coins come in, they will merely rely on speculation to harvest a round of retail investors and then exit, further exacerbating market chaos and making retail investors even more hesitant to enter.
If this trend continues, when will we see the much-anticipated altcoin market surge? It might take until those project teams that want to rely on issuing coins to profit from retail investors realize that even if they spend money to list coins, they won't be able to recoup their costs—at that time, the number of new coins listed will drastically decrease, and the funds in the market will no longer be diverted, leaving only the quality coins to attract attention from investors, which may lead to the so-called altcoin season. But before that, everyone should be cautious when dealing with altcoins to avoid being among those who get cut.
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