Study Finds Most Exchange Tokens Underperforming Compared to Bitcoin: Analysts

In a recent study conducted by TokenInsight, it has been revealed that the majority of exchange tokens have underperformed in comparison to the performance of Bitcoin, despite the surging popularity of tokens like Binance Coin (BNB) and Bitget Token (BGB) in the crypto market.
While exchange tokens have gained traction, particularly amidst the growing dominance of decentralized finance (DeFi) and non-fungible tokens (NFTs), Bitcoin (BTC) continues to demonstrate its superiority as an investment choice, as highlighted by analysts at TokenInsight.
The study points out that not all exchange tokens have shown similar levels of profitability, with some facing challenges due to regulatory pressures. For instance, BNB experienced a notable decline in the latter half of 2023 due to regulatory concerns but managed to rebound towards the end of the year, surpassing its previous all-time high at the beginning of 2024.
According to the research report, exchange tokens collectively held a market capitalization of $68 billion as of February, representing 3.2% of the entire crypto market cap. However, this figure reflects a slight decrease of approximately 0.3% compared to the end of 2023.
Despite Bitcoin’s continued dominance in the market, some exchange tokens such as BGB and MX Token (MX) have managed to outperform it. BGB saw gains of 434%, while MX witnessed a rise of 248%, according to TokenInsight’s data. In comparison, Bitcoin surged by over 200% since early 2023.
However, not all exchange tokens have fared well. TokenInsight’s analysts noted that HTX’s HT and OKX’s OKB tokens are among the few whose market value has declined. HT fell by 75%, while OKB dropped by 53% since the beginning of 2023.
The findings of the study shed light on the diverse performance of exchange tokens in the crypto market, highlighting both opportunities and challenges for investors in this space. As regulatory landscapes evolve and market dynamics continue to shift, monitoring the performance of exchange tokens alongside established cryptocurrencies like Bitcoin remains crucial for informed investment decisions.