invezz.com
Coinbase, a leading cryptocurrency in the US, is still expanding the list of cryptocurrencies that users can trade on the platform. The exchange has added three new cryptocurrencies on Coinbase Pro, which has caused a surge in prices.
Major Gains after Listing
An announcement issued by the exchange on October 19 stated that it would start allowing users on the platform to access cryptocurrencies such as ARPA Chain (ARPA/USD), Bounce (AUCTION/USD) and Perpetual Protocol (PERP/USD).
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
The exchange stated that these three new listings would start trading on or after 21.00 PT on October 19, if enough liquidity is achieved. The three cryptocurrencies will be available for trade-in pairs of USD, EUR and USDT.
Following this listing, ARPA and AUCTION underwent a major ‘Coinbase effect’ that saw prices gaining by around 25% in a 24-hour period. However, PERP did not respond to the listing, and it failed to attract any new buyer interest from traders.
After the listing was made public, PERP made a slight gain but has since lost around 5.6% in value during the past 24 hours, to start trading at $16.48 according to CoinGecko. The altcoin is also 30.7% down from an all-time high of $24.40 created on August 30.
ARPA is the native token of the ARPA Chain network. The network offers smart contracts that offer privacy and facilitate off-chain transactions. Before the Coinbase announcement, ARPA had already made a 9% gain. After the listing, the altcoin reached an all-time high of $0.186. However, it has slumped slightly from those highs to around $0.171.
AUCTION is the native token of Bounce, a decentralized auction network. The altcoin also gained by around 23% in 24 hours following the Coinbase listing to reach $40. However, it has dipped slightly to around $38.
The Coinbase Effect
New listings on Coinbase usually undergo significant price gains. However, not all people agree that the ‘Coinbase effect’ exists. A report by Coin Metrics in June last year stated that the impact of prices following listing on Coinbase Pro was overrated.
The report showed that new listings on Coinbase did not enjoy any major gains as has been speculated. The results showed that new tokens listed on the exchange only see a gain of between 1% and 14% ten days before and ten days after the date of the listing.
However, some analysts still believe that new Coinbase listings usually experience major price gains. According to Messari, a popular crypto analytics firm, the Coinbase effect results in an around 90% gain within five days.