Messari analysts described the “Coinbase effect” – after listing on the exchange, the price of a cryptoasset grows on average by 91%. After listing on other trading platforms, the prices of cryptoassets do not rise so much.
Analyst firm Messari conducted a study that examined the spikes in cryptoasset prices during the first five days of trading on Coinbase versus the impact on the value of a cryptoasset from listing on other major exchanges, including Binance, FTX, OKEx, Kraken, and Gemini. Analysts have concluded that the “Coinbase effect” is real.
“Listing on Coinbase gives cryptoassets the highest average return at around 91%. At the same time, the possible range of changes in the price of a cryptoasset ranges from -32% to + 645%, ”said Messari analyst Roberto Talamas.
Coinbase recently listed ADA, ANKR, CRV, and STORJ, after which the price of these cryptoassets skyrocketed. FIL has grown sixfold in value since it went public in December. The price of ADA on the Kraken exchange is up 36% in two days after Coinbase announced on March 16 that it plans to list the cryptoasset. At the same time, the cost of ADA decreased slightly after the actual start of trading on Coinbase on March 18.
Messari’s analysis took into account the dynamics of the price of the cryptoasset during the first five days after the listing, and not from the date of its announcement. Messari also filtered the data to exclude outliers – price reactions that were considered so extreme that they could create an unrealistic picture of the effect.
“According to outliers, some cryptoassets have risen in value many times after the listing was announced, which led to a sharp shift in the average towards the right side of the distribution. Among such assets were District0x and Civic, which saw prices rise by 645% and 493%, respectively, ”Talamas wrote.
However, even after weeding out the outliers, Coinbase still enjoyed the highest post-listing price response of any major exchange.
5-day cumulative dynamics of cryptoassets after listing on Coinbase. Source: Messari.
Coinbase recently announced that the exchange’s direct listing on the Nasdaq will take place on April 14. According to preliminary forecasts, the shares will be trading at $ 300-350, while the exchange is estimated at about $ 100 billion.
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