On-chain Data Reveals Coinbase Nasdaq Debut Attracted More Bitcoin Investors
The historic public debut of American cryptocurrency exchange Coinbase Global Inc on the Nasdaq exchange has been proven to have a tremendous impact in attracting a new set of Bitcoin (BTC) holders. According to on-chain data, the Bitcoin Entities Net Growth surged to the levels seen only twice before in the history of the premier digital currency.
Per Glassnode’s metric, the Bitcoin Entities Net Growth is the total number of entities appearing on the network for the first time and with non-zero balances, less the number of entities with zero balances. The entities, in this case, could be an exchange or any user that controls multiple funded Bitcoin addresses.
Coinbase's listing on-boarded an astonishing amount of new #Bitcoin holders.
Bitcoin Entities Net Growth skyrocketed to the levels seen only twice before in its whole history.
The effect of this historical event is yet to come. pic.twitter.com/KcldxEKAPS
— Lex Moskovski (@mskvsk) April 25, 2021
The increased Bitcoin Entities Net Growth fueled by Coinbase’s listing represents the third time the digital asset will be recording this milestone, after similar moves were made in late 2017, and late 2018 respectively.
Coinbase Listing Makes a Case for the Matured Bitcoin Ecosystem
Coinbase’s listing on Wall Street has been tagged by many as a potential gateway for mainstream institutional investors to get some form of exposure to the cryptocurrency industry. Coinbase’s business primarily entails providing the platform where Bitcoin, Ethereum (ETH), Litecoin (LTC), and other digital assets are traded. As a result, the overall market trend has a direct impact on the performance of the company and its share price as a whole.
The company’s proponents argue that the emergence of the firm as a public traded company is a sign of the maturing state of crypto in the United States and the world at large. This position was bolstered by the timing of Coinbase’s listing which coincided with a massive buyup in which the price of Bitcoin received a rejuvenation, printing a new all-time high of $64,500.
The rationale for investors remains compelling, buying Coinbase shares and Bitcoin may be positively correlated as an increase in the latter can spike an increase in the former as well. Over the past week, Bitcoin has been succumbing to selling pressures and with its current price of $49,912.11, the coin has lost 7.78% of its value in the past week. Correspondingly, Coinbase shares closed at $291.60, a 0.63% dip from the Friday trading session.
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