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Ronin Network’s RON token slid 14% following news that it was being listed on Binance.
In a rare development, the listing of Ronin Network (RON) on Binance led to a substantial price decline. The price action is contrary to the popular trend of coins surging in price upon listing on the popular cryptocurrency exchange.
Ronin was exchanging hands at around $3.2 prior to the announcement of the Binance listing. However, the asset dropped as low as $2.77 following the news, suggesting that investors took profit on the milestone, with less demand as is usually the case.
#Binance will list @Ronin_Network $RONIN with Seed Tag Applied.
➡️ https://t.co/oLDBZsCVzq pic.twitter.com/Ok0y8FLkbe
— Binance (@binance) February 5, 2024
Why Did Ronin Drop Significantly Post Binance Listing?
Given the unique nature of the RON price following the Binance announcement, many have wondered why the token fell sharply. Evidently, the charts offer some insight.
In the days leading up to the Binance listing, the price of RON has surged significantly, including an 80% increase in the past month. Even more notable is that Ronin’s native token reached a new all-time high of around $3.5, signifying an increase of around 25% on the day before the Binance listing announcement.
Hence, the price action suggests that investors had prior notice of the potential listing and tried to front-run the news. Therefore, once Binance provided a confirmation of the listing, many who got in early took profits on their position, sending Ronin’s price crashing.
However, the early price action on the RON Binance listing may not completely mirror the future of the cryptocurrency. Ronin Network is an L2 sidechain developed by Sky Mavis, the team behind the popular Web3 game Axie Infinity (AXS).
RON serves as a native asset for users to pay gas fees and access some of the newly launched Web3 games being built on the chain. Ronin Network has over 14 million addresses, already making it one of the most widely used blockchains in the crypto space.
In the meantime, Ronin (RON) trades around $2.87 at the time of writing, with a $844 million market cap. The coin still remains up around 50% on the weekly chart despite the latest bearish price trend.