Is DigiByte on Binance? As of June 2020, the answer is yes. Binance officially made DigiByte trading pairs available on June 22nd. Now, it is possible to trade Bitcoin, Binance Coin, and BUSD for DigiByte, just like hundreds of other altcoins.
Will June’s arrival of DigiByte on Binance result in a DGB bull run?
In the past, new coin listings on Binance have seen coin prices rally by up to 80% shortly afterward. However, new coin listings can also result in major price corrections. Here, we’ll look at the possible outlook for DGB.
Will the Arrival of DigiByte on Binance Result in a DGB Bull Run?
The arrival of DigiByte on Binance has a lot of investors watching DGB closely.
In the past, the so-called ‘Binance Effect’ has seen new digital assets listed on Binance rally by up to 80%. This is thanks to coins becoming more easily accessible to traders.
- On average, coin prices make 32% gains in the 7-days running up to new Binance listings going live.
- Coins typically make the most gains the day that listings go live. (In the case of DGB, this was June 22nd.)
- Early investors in altcoins like DigiByte, often take away up to 109% in profit by cashing out as coin prices reach their peak.
Sadly, evidence suggests that the benefits of the so-called Binance Effect are temporary, at least in the short-term.
Listing DigiByte on Binance May Now See Prices Pull Back
Despite the hype surrounding new coin listings on Binance, evidence suggests that Binance listings can be detrimental for some digital assets in the long-term.
This year, several new coin listings on Binance have seen digital assets fall sharply in value just a month later.
- Coit made 37% gains after arriving on Binance but later began falling in value, being 53% down just 30-days later.
- DREP made gains of 33% after Binance listings went live, but was down 40% just a month later.
- TokenClub made 31% gains the day it was listed on Binance. However, coin prices fell by 29% 30-days later.
In all these cases, though, new coin listings took the form of Initial Exchange Offerings (IEOs). These are essentially ICOs, meaning that coins have largely speculative value. By comparison, DigiByte has strong community support and has been a favorite altcoin for many investors since 2014.
Because of DigiByte’s strong community support and use case, DGB may buck the trend of some coins falling in value after being listed on Binance. However, new investors and traders should still expect DigiByte prices to fall slightly through July, as the excitement surrounding DGB’s Binance listing starts to fade.
Is DigiByte a Good Investment?
DigiByte has been a top altcoin for cryptocurrency investors to watch for several years. This is thanks to the fact that DigiByte offers faster transaction settlement times than Bitcoin and many other altcoins. It is also impossible to fork the DigiByte blockchain like it is the Bitcoin blockchain.
At present, many DigiByte supporters believe that DGB will reach between $1 and $10 over the next 5 to 10 years. For this reason, DGB is widely regarded as a smart coin to invest in. All new investors need to remember is that DGB prices can be just as volatile as other digital asset prices.
This is not investment advice nor is it meant to be. This is an opinion by the author.