In previous bull markets, one of the more consistent developers has listed cryptocurrency project pricing on Coinbase, a phenomenon known as the “Coinbase effect”.
The recent announcement of Polygon (MATIC), SKALE (SKL) and SushiSwap (SUSHI) listed on the stock exchange and the start of trading on March 11th proved that Coinbase’s impact remains strong as the tokens saw record volumes and double-digit prices. Movements from the moment of entry occurred.
MATIC / USDT vs SKL / USDT vs SUSHI / USDT 4-hour chart. Source: TradingView
Data from Cointelegraph Markets and TradingView shows that SKL was the largest recipient of Coinbase’s impact, growing more than 200% since the March 9 announcement, while MATIC gained 88% and SUSHI took a modest 7%.
SKL / USDT
SCALE describes itself as a “flexible network” designed to provide the scalability of the Ethereum (ETH) network by increasing transaction throughput and reducing latency to ensure payments are made at the cheapest possible rate.
According to the project’s website, flexible contracts with solvency can execute “thousands of times faster for a fraction of the network cost,” and the platform is well suited for gaming and streaming services that are affected by congestion on Ethereum’s backbone.
Congestion and high transaction costs on Ethereum have once again become a major concern of the cryptocurrency community over the past two months, as the lure of decentralized financing and non-exchangeable tokens has led to massive increases in network activity and gas fees.
Matic / USDT
Polygon (MATIC) started growing in 2021, and Coinbase’s listing was the latest to raise altcoin prices.
Previous significant developments include the transition from Matic to Polygon, which was accomplished when the project was to become the “Polkadot of the Ethereum Network”, with a focus on enabling interoperability with individual blockchain networks in the Ethereum ecosystem.
After re-marking, many projects merged or switched to a Tier 2 solution, resulting in significantly lower transaction costs and faster confirmation times.
MATIC’s price is up 150% since Coinbase was announced, and on March 12th, the 24-hour alt currency trading volume was $ 2.6 billion.
VORTECS data from Cointelegraph Markets Pro began to show an optimistic outlook for MATIC on March 6, ahead of the latest price increase.
The VORTECS score, excluding Cointelegraph, is a mathematical comparison of historical and current market conditions derived from a set of data points, including market sentiment, trading volume, recent price movements, and Twitter activity.
As shown in the chart above, VORTECS scored 81 points on March 6, three days before Coinbase’s listing was announced. After returning to a low of 48 on March 8, VORTECS ø rose to 89, about two days before the price reached a new all-time high.
Sushi / USDT
SushiSwap (SUSHI) became Coinbase’s third-listed currency this week and received a more subdued response, although SushiSwap is one of the top decentralized exchanges with $ 4.21 billion currently listed.
The decentralized economy has been one of the hottest topics in the cryptocurrency sector since December 2020, but there has been a noticeable drop in activity in recent weeks as non-exchangeable tokens have been in the spotlight.
Earlier in SUSHI, the price rose 675% in 2021 from a low of $ 2.69 on Jan.1 to a high of $ 20.57 on March 2, so it should come as no surprise that the price has been more restrictive in its response to the price hike. Coinbase login announcement.
The remarkable link between the three projects under discussion relates to proposing solutions to current problems facing the Ethereum network.
While Coinbase’s impact may have helped spur recent price increases per project, the growing needs of the cryptocurrency community and the solutions provided by these protocols, MATIC, SKL and SUSHI, are well positioned to grow further with the active participation of the cryptocurrency.