Klaytn, an open blockchain project managed by Kakao, an Internet behemoth based in South Korea, has announced that its native token $KLAY, has been listed on Binance. KLAY’s price soared from a 24-hour low of $0.8492 to a high of $1.2769 shortly after the news, before falling slightly and stabilizing at $1.00 at press time. However, there were several factors at play in the alt’s rise.
Binance is the world’s largest crypto exchange by volume, and the “Crypto Exchange Pump Phenomenon” is quite genuine in its case. A Messari analyst had previously discussed the Coinbase phenomena in this regard, he said;
“Coinbase listings have the highest average return of 91 percent, but also the widest variation, with returns ranging from -32% to 645 percent.”
Binance listings have also witnessed similar returns and volumes. This “Crypto Exchange Pump Phenomenon,” combined with other external variables like ecosystem-centric advancements and increasing search volumes, could explain KLAY’s 50 percent price increase. Prices for Dogecoin and Shiba Inu have risen in the past when they were added to Coinbase.
Here’s what caused the alt’s price to skyrocket
KLAY has been at the top of the charts for quite some time now. In fact, it was down about 23% from the aforementioned level at press time, with a breakeven multiple of 1.30. However, the asset’s lowest trading price since its ATH was $0.733, and it has greatly increased at the time of writing.
Since the news of its Binance listing began to circulate, KLAY’s one-day chart has experienced an almost 50% increase. According to the Chaikin Money Flow, there was also an increase in capital inflows at the time. The signal, however, remained below zero, indicating that the asset is in a bearish zone.
On the contrary, trade volumes for the asset increased to roughly 28.68 million on June 24, compared to 13.05 million the previous day.
When looking at longer-term data for KLAY, it’s worth noting that the percentage of total stablecoin supply held by whales with more than 5 million USD has steadily increased. This indicates that whales have a higher level of trust in KLAY’s performance. Following that, the asset saw an increase in dev activity and contributor material around the month of June.
The alt’s price soared as a result of these causes, as well as its Binance debut. Furthermore, the news of the listing coincided with a significant increase in Klaytn’s Twitter followers, indicating increasing user interest.
Klaytn has recently been spotted pushing for ecosystem-centric improvements. Klip and Kaikas wallets, as well as Klayswap, were just made available to users. In mid-June, the company’s Klip wallet had surpassed 1 million users. Definix, a staking and yield farming platform connected with Klatytn, is one of the new features they built.
Klaytn also announced two months ago that it is teaming with ConsenSys to improve the Klaytn platform’s integrated digital currency operations. Around the same time, the alt experienced a price increase.