In 2017, Coinbase’s influence over the crypto market was tremendous, with the exchange originally only offering access to select few crypto assets.
As such, whenever they would list a new token, its price would provide investors with unprecedented returns.
This was dubbed the “Coinbase effect,” although this phenomenon faded throughout late-2018 and 2019 when the platform started supporting a slew of assets that many people haven’t even heard of.
It now appears that the “Coinbase effect” is back, as DeFi-related crypto tokens that are listed on the platform have been seeing tremendous gains.
Coinbase starts listing DeFi tokens – sends Band Protocol’s price to all-time highs
Yesterday, BAND, the token associated with the Band Protocol’s decentralized oracle network, saw a massive price spike that sent it surging from daily lows of $4.90 to highs of nearly $8.00.
As CryptoSlate reported yesterday, this price spike also came about after news broke regarding BAND securing a new integration with the blockchain platform Elrond.
The confluence of this integration, coupled with news of the Coinbase Pro listing, allowed BAND to be one of the best performing assets within the crypto market yesterday.
This has also shown that the once-coveted “Coinbase effect” is back in play as investors grow more willing to siphon money into altcoins.
Luke Martin, a respected cryptocurrency analyst, spoke about this in a recent tweet, explaining that this opens up a “really attractive trading opportunity.”
“I’ve been skeptical about the ‘Coinbase effect’ for altcoins…but that has completely changed in the current market. BAND ripped for 45% when it got added yesterday. I think there’s a really attractive trading opportunity for the other potential adds on their list.”
What crypto token will Coinbase list next?
In a July 31st blog post, Coinbase explained that they are looking to list a variety of different tokens.
According to the exchange, the assets still under consideration of being listed are:
“Ampleforth… Balancer, Blockstack, Curve, Fetch.ai, Flexacoin, Helium, Hedera Hashgraph, Kava, Melon, Ocean Protocol, Paxos Gold, Reserve Rights, tBTC, The Graph, THETA, UMA, and WBTC.”
Of these tokens, Martin believes that BAND’s successful listing will increase their propensity to list another DeFi token next. Of those that remain, he thinks the next one listed may be KAVA.
He explained his reasoning behind this, noting that it has seen intense buying pressure and that “volume…can show up before [the listing is] announced.”
“KAVA caught my attention this morning and after the BAND move I can’t ignore it. Breakout of previous resistance and potential for listing. Maybe someone knows something I don’t…”
As more retail investors begin moving to accumulate altcoins, the impact that a Coinbase listing has on a smaller token’s price action will likely grow larger.