In his published analysis, a cryptocurrency analyst evaluated the historical returns of projects published by Binance on Launchpad and compared them with the returns of Ethereum's staking service.
The analysis includes statistical data from 2021 to the present, focusing on various indicators of Launchpad performance.
These indicators include D1 Earnings (price difference between initial listing and first decentralized exchange listing), ATH Earnings (highest price compared to first decentralized exchange listing), BNB-based D1 ROI (return on investment from selling tokens by investing 1 BNB on the first day). ) and BNB-based ATH ROI (return on investment from selling tokens by investing 1 BNB at historical high).
Binance Launchpad Projects Achieve a Median 12.6X First-Day Return Compared to DEX Listings
The analysis takes the median of all Launchpad projects since 2021, showing the median D1 Gain to be 12.6x, ATH Gain 25.7x, BNB-based D1 ROI 0.015 and BNB-based ATH ROI 0.031.
However, the analysis also highlights three new tokens released since HOOK that have outperformed the historical average across all indicators. The median D1 Earnings of these projects are 24.4x (1.9 times the historical median), ATH Earnings are 1.4 times the historical median, BNB-based D1 ROI is 1.5x, and BNB-based ATH ROI is 1.3x. Interestingly, these projects show higher profitability even in a bear market compared to most projects in a bull market.
While some users perceive current Launchpad projects as "less exciting", this may be attributed to the lack of major innovations. Previous projects such as SFP and GMT made a strong impression with returns of hundreds of times.
But since GMT, a year has passed before projects with similar growth rates have emerged, resulting in relatively lower maximum returns.
Is Holding BNB More Profitable Than Staking Ethereum In The Long Term?
The analysis also examines the long-term returns of holding BNB and compares them to ETH staking rewards. Over the past two and a half years, the total ROI based on BNB from the sale of the first-day distributed tokens has totaled 36% with an annual return of 14%. This appears to be slightly higher than returns from ETH staking over the same period.
Also, taking into account the earnings from BNB Launchpool, the total ROI based on BNB reaches 52% with an annual return of 21%. These figures show that BNB Launchpad offered almost twice as much returns compared to staking ETH in the same period.
Conclusion
Last year, despite the bear market, BNB Launchpad and Launchpool yields remained roughly 1.5x higher than ETH staking returns.
*Not investment advice.