Yesterday, the news that Coinbase launched 1inch (1INCH), Enjin Coin (ENJ), NKN (NKN) and Origin Token (OGN) spread throughout the currency circle. The 24-hour increase of Gate.io is as high as 107.84%, which once again confirms the Coinbase effect.

The Coinbase effect refers to when a new asset is listed on the Coinbase exchange, this event will have a very positive impact on the asset. Why is there such an impact? In fact, it is very simple to analyze. Coinbase is an established exchange, and it has also established a good reputation and reputation in the encryption field. Therefore, it faces a wide audience and has a lot of traffic. Therefore, when the new coin goes online, it is bound to attract more users’ attention. In addition, Coinbase also recently released the news of the listing. This news undoubtedly added a halo to Coinbase, making it even more popular.

According to the data of MESSARI, the average rate of return of tokens 5 days after listing on Coinbase is the highest at 91%. The average rate of return also proves that the asset will increase after the currency is listed on Coinbase.

But does this happen to all currencies?

Messari's intelligence database collected 14 assets that were listed on Coinbase between May 14, 2020, and March 23, 2021, and found that only six assets had higher positive returns. The analysis shows that, in terms of exchange listings, Coinbase listing announcements have the greatest positive impact on the asset's average return. This result can be attributed to the popularity of Coinbase among retail investors, which makes it the most famous cryptocurrency trading platform. But this positive impact is not for all currencies.

Although the Coinbase effect does not cover all currencies, its positive impact is also a good signal. Newbies in the currency circle can also track the news of Coinbase in real time.

So besides Coinbase, are there other exchanges that have such an impact?

We pointed out in the analysis just now that the popularity of Coinbase among retail investors makes it the most famous cryptocurrency trading platform, allowing it to have the Coinbase effect. Based on this, we can also analyze other companies with this potential. exchange.

According to data from CoinGecko, Binance’s trading volume in 2020 increased to $189 billion, and its market share increased by 16% to 45%. Followed by Huobi, the transaction volume increased to $61 billion, with a market share of 19%. Next is OK, with a market share of 14%. It is followed by Kraken with a market share of 4%.

According to the transaction growth and market share, it can be pre-determined that the popularity of the exchange among retail investors is: Binance, Huobi, OK and Kraken. Therefore, the currency listing information of these exchanges also has certain reference. So who could be the next Coinbase Effect? Need to accept the test of the market!