Study: “Coinbase Effect” is Overrated

06/24/2020

Alex Kondratyuk

The Effect of Digital ListingUS Coinbase Pro assets are significantly overvalued. This conclusion was reached by the analytical company CoinMetrics.

According to the report, new announcementsCoinbase tokens cause a change in the market value of the asset in the range from -1% to + 14% relative to USD, BTC and ETH. Analysts also came to the conclusion that listing news on the exchange do not significantly affect the general market trends of the selected cryptocurrencies.

CoinMetrics Learned 16 Assets Added Toexchange recently. Six of them showed negative changes in market value within ten days after listing, three assets went up by less than 5%. The average effect is estimated by analysts at + 4% to the price.

Analysts also rated the effect of adsCoinbase, in which the exchange reports on the possible listing of a number of cryptocurrencies. According to them, the short-term impact of announcements on the market value of assets is overshadowed by the current general trend in the market.

Throughout the bear cycle in 2018most of these cryptocurrencies showed negative dynamics in prices. In 2019, there were inconsistent up and down movements. In the second quarter of this year, most assets were characterized by weak growth.

As a result, CoinMetrics noted thatThe prevailing opinion about the strong impact of listings on Coinbase on the market value of cryptocurrencies does not fully correspond to reality. A more important factor is the state of the market at the time of adding new assets.

Recall last week, Coinbase announced the listing of the Compound token (COMP). The exchange announced plans to add tokens of a number of leading DeFi projects earlier this month.