Every trader has noted that the cryptocurrency exchange of Coinbase has lately been the root of a lot of excitement in the crypto markets. Whenever the exchange announces the listing of a coin or token, we see tremendous excitement as traders rush to trade the digital asset.
How Ox (ZRX) Wowed the Crypto Trading Community
ZRX was listed on Coinbase Pro around the 11th of October and by the 16th, it was available on the regular Coinbase platform and all the corresponding mobile applications. Before the Coinbase Pro listing, ZRX was trading at $0.66. When ZRX was finally available on all platforms related to Coinbase, it had peaked at $1.07: a percentage increment of 62% in less than 7 days..
Similar Pattern with the Basic Attention Token (BAT) Listing on Coinbase Pro
A similar pattern was observed when BAT was listed on Coinbase Pro on the 2nd of November. The digital asset did an amazing 33% in gains within few minutes of Coinbase Pro making the announcement at 1pm Pacific Standard Time.
Savvy crypto traders are now awaiting for the second wave up for BAT when it is listed on the regular Coinbase platform and all the mobile apps. This is similar to what was witnessed with ZRX a few weeks back.
Bitcoin Cash Surges after Coinbase Announces Support for the Upcoming Fork
Coinbase was once again the force behind Bitcoin Cash exhibiting impressive gains on Sunday the 4th of November. The American trading platform announced that it was going to support the upcoming Bitcoin Cash hard fork on the 15th of November.
Will Coinbase Single-handedly Ignite a BTC and Crypto Bull Run?
By now, we have connected the dots as to why the term Coinbase Effect is very popular. The latter term has been used on numerous occasions to describe the effects the trading platform has on any digital asset. We have seen it with BAT, ZRX and BCH. We are also slowly seeing it with Stellar (XLM), Cardano (ADA) and ZCash (ZEC) in the crypto markets.
The last 3 digital assets are scheduled for listing on the platform in the near future. We also have news that the exchange plans on listing hundreds of digital assets with time. This list of ‘hundreds of cryptocurrencies’ has been speculated to also include XRP and TRX.
Therefore, we can form the following theories about the exchange:
- Coinbase excites individual traders far more than ETFs and Bakkt. The individual traders are actually the ones trading and affecting the price of the digital assets as reported by the exchanges and Coinmarketcap.com. Bakkt and other institutional investors are probably buying Over The Counter (OTC) and away from exchanges thus their effect on the price is not felt
- Coinbase has 3 pending digital assets to list as we head into the Holiday season. XLM, ADA and ZEC might become the MVPs of the fourth quarter of 2018 as they reignite interest on crypto trading as families meet during Thanksgiving and/or Christmas. A similar event was witnessed in Q4 of 2017
- Crypto traders hold the key to determining the price of digital assets more than they are aware of. They can single-handedly make this industry great as envisioned by Satoshi Nakamoto. Institutional investors are not all that important. They are simply repackaging the digital assets and adhering to an old-way of thinking