In previous bull markets, one of the most consistent price moves for cryptocurrency projects was listed on Coinbase, a phenomenon known as the “Coinbase Effect”.
The recent announcement that Polygon (MATIC), SKALE (SKL) and SushiSwap (SUSHI) will be added to the exchange and will start trading on March 11th has shown that the Coinbase effect will continue to be strong as the tokens are one Record trading volumes and double digit price movements have taken place since listing.
MATIC / USDT vs. SKL / USDT vs. SUSHI / USDT 4-hour chart. Source: TradingView
Data from Cointelegraph Markets and TradingView show that SKL has been the biggest beneficiary of the Coinbase effect, up more than 200% since the March 9 announcement, while MATIC has grown 88% and SUSHI has grown a modest 7%.
SKL / USDT
SKALE refers to itself as an “elastic network” designed to improve the scalability of the Ethereum Network (ETH) by increasing transaction capacity and reducing latency to ensure payments can be made as cheaply as possible.
According to the project’s website, Solidity smart contracts can run “a thousand times faster at a fraction of the mainnet cost,” and the platform is well suited for gaming and content streaming services stalled by congestion on Ethereum’s main network devices.
SKL / USDT 4 hour chart. Source: TradingView
Overload and high transaction costs on Ethereum have once again emerged as a significant problem in the cryptocurrency community in the past two months, as the lure of decentralized funding and non-fungible tokens has led to a significant increase in network activity and gas charges.
MATIC / USDT
Polygon (MATIC) already played a role in 2021, with the Coinbase listing being the most recent event to have driven the price of the altcoin soaring.
Previous significant developments included the rebranding from Matic to Polygon, carried out when the project became the “Polkadot of the Ethereum Network” by focusing on interoperability with separate blockchain networks in the Ethereum ecosystem.
Since the rebranding, several projects have been integrated into the Layer 2 solution or migrated to it, which offers significantly reduced transaction costs and faster confirmation times.
MATIC / USDT 4-hour chart. Source: TradingView
MATIC’s price has risen 150% since the Coinbase listing was announced, and on March 12, the altcoin hit a record $ 2.6 billion in 24 hours.
VORTECS ™ data from Cointelegraph Markets Pro identified an optimistic outlook for MATIC on March 6, ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS ™ Score (green) vs. MATIC price. Source: Cointelegraph Markets Pro
As can be seen in the table above, the VORTECS ™ score hit a high of 81 on March 6th, three days before the Coinbase listing was announced. After the VORTECS ™ value hit a low of 48 on March 8th After declining, it rose to a new all-time high of 89 about two days before the price rally.
SUSHI / USDT
SushiSwap (SUSHI) was the third coin to be listed on Coinbase this week and received a more subdued response, despite the fact that SushiSwap is one of the best decentralized exchanges and currently has $ 4.21 billion on its log.
Decentralized funding has been one of the hottest topics in the cryptocurrency sector since December 2020, but has seen a noticeable decline in activity in recent weeks as non-fungible tokens have come into the spotlight.
SUSHI / USDT 4 hour chart. Source: TradingView
SUSHI had previously seen prices jump 675% in 2021, from a low of $ 2.69 on Jan 1st to an all-time high of $ 20.57 on March 2nd. So it’s not entirely unexpected that the price reacted to the 675% subdued announcement on a Coinbase list.
A notable correlation between the three projects discussed is offering solutions to the current problems facing the Ethereum network.
While the Coinbase effect may have helped fuel the recent price hikes for each project, due to the larger demands of the cryptocurrency community and the solutions offered by these protocols, MATIC, SKL and SUSHI are well positioned to take further advantage as the active participation in the cryptocurrency ecosystem will continue to increase.
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