Coinbase effect triggers massive volume spikes for key DEX dapps


New Member
May 12, 2020
News about the Coinbase announcement that "it may be soon be listing specific DeFi tokens such as Aave, Bancor, Compound, and Synthetix." is everywhere now - everyone is talking, discussing, and speculating what is going to happen next.

But let's have a look at the facts and history for a second:

A very good example of the "Coinbase effect" is Chainlink. In mid-2019 Chainlink, a relatively unknown cryptocurrency received a healthy price surge after landing on Coinbase. LINK was worth just over $2 before its listing was announced and has doubled in price since.

Another example - MakerDAO‘s MKR token. Coinbase officially added the Maker (MKR) token to the supported assets on the exchange’s professional trading platform, Coinbase Pro. MKR, as a result, saw a reported 37% increase.

Recently, we spotted that Uniswap, Kyber, and IDEX have seen a significant increase in daily trading volume. It looks like traders want to secure tokens at the current price – before they are listed. Therefore driving the daily trading volume wild on the top exchanges.

What are your thoughts on this?