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The Coinbase Effect

Updated on September 16, 2018
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It’s been almost two weeks since Coinbase announced that they’re exploring the addition of 5 new coins:

  • Cardano (ADA)
  • Basic Attention Token (BAT)
  • Stellar Lumens (XLM)
  • Zcash (ZEC)
  • Ox (ZRX)

Unlike their announcement of adding Ethereum Classic, these assets have no guarantee that they will be listed for trading.

Nevertheless, the announcement of Coinbase considering adding these coins has not gone unnoticed on cryptomarkets.

However, some have seen much higher gains than others, as seen in the table below.

Gains Since Coinbase Announcement

Coin
July 13th 2018
July 26th 2018
Percentage Change
Cardano (ADA)
0.12 usd
0.17 usd
42%
Basic Attention Token (BAT)
0.27 usd
0.32 usd
19%
Stellar Lumens (XLM)
0.18 usd
0.32 usd
78%
Zcash (ZEX)
158 usd
225 usd
42%
0x
0.76 usd
1.14 usd
46%
https://coinmarketcap.com/

As it stands, Stellar Lumens has had the biggest gains of the 5 coins announced.

Jumping 78% since the announcement by Coinbase and currently, at a market cap of $6billion, Stellar Lumens is also the biggest of the 5.

The smallest gains have been made with Basic Attention Token (BAT), only increasing 19% and currently having a market cap of $326 million.

However, all 5 of the coins still have a long way to go before reaching their “all-time high” set during the height of the cryptomarkets (December 2017 – January 2018).

Decrease Since All Time Highs

Coin
All Time High
Current Price
Percentage Change
Cardano (ADA)
1.33 usd
0.17 usd
-87%
Basic Attention Token (BAT)
0.98 usd
0.32 usd
-67%
Stellar Lumens (XLM)
0.94 usd
0.32 usd
-66%
Zcash (ZEC)
955 usd
225 usd
-76%
0x (ZRX)
2.53 usd
1.14 usd
-55%
https://coinmarketcap.com/

All 5 of the coins have seen dramatic losses since their "All Time High".

Cardano has since the biggest decrease (-87%) followed by Zcash (-76%), Basic Attention Token (-67%), Stellar Lumens (-66%), and 0x (-55%).

Whats Next For These Coins

It's difficult to predict the cryptocurrency markets, as prices change and fluctuate greatly every day. However, one could still assume if either one of these coins does get added to Coinbase, they will since massive gains.

As it stands, Coinbase currently trades Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. The addition of Ethereum Classic has also been confirmed to be ongoing. The addition of one the newly announced coins will definitely make a big impact on the service. They will be the cheapest ones available on a list of exclusive coins, making their purchase much easier for the mainstream Crypto user.

Coinbase

Coinbase is a cryptocurrency exchanged located in San Francisco, California. The service can be used to exchange Bitcoin, Bitcoin Cash, Ethereum, and Litecoin with fiat currencies.

The company was founded by the Brain Armstrong and Fred Ehrsam in 2012.

Coinbase is currently the largest cryptocurrency exchange in the U.S.

August 2018 Update

The cryptocurrency market is a very volatile place. When Coinbase first announced the news of the addition of new coins, the markets reacted well. At the time, the markets were on a downturn since the all-time highs (ATH) that were achieved in early January 2018. But with the Coinbase announcement some coins such as ADA, BAT, XLM, ZEX, ZRX saw some growth in their prices.

However, it seems that a month after my last update the growth of the coins was not sustained and the markets, as well as the announced coins, have all gonna down further from their all-time highs they achieved in January 2018.

Coin
July 26th 2018
August 27th 2018
Percentage Change
Cardano (ADA)
0.17 usd
0.09 usd
-47%
Basic Attention Token (BAT)
0.32 usd
0.21 usd
-34%
Stellar Lumens (XLM)
0.32 usd
0.21 usd
-34%
Zcash (ZEX)
225 usd
137 usd
-39%
Ox (ZRX)
1.14 usd
0.73 usd
-36%
Data from CoinMarketCap

As you can see in the table above, all five coins have again fallen and backtracked any gains they made during the announcement. The biggest loser of the five is Cardano (ADA) having lost 47% followed by Zcash (39%), Ox (36%), Basic Attention Token (34%) and Stellar Lumens (34%).

Most of the coins have also gone below the price they had before the announcement with the exception of Stellar Lumens, which was 0.19usd at the time and currently is worth 0.21usd.



All Time High Continued Decline

Coin
All Time High
August 27th 2018
Percentage Change
Cardano (ADA)
1.33 usd
0.09 usd
-93%
Basic Attention Token (BAT)
0.32 usd
0.21 usd
-78%
Stellar Lumens (XLM)
0,32 usd
0.21 usd
-78%
Zcash (ZEX)
955 usd
137 usd
-85%
Ox (ZRX)
2.53 usd
0.73 usd
-71%
Data from CoinMarketCap

The cryptocurrency markets further continue to decline since the record all-time highs in January. Cardano (ADA) is seen as the biggest loser, down 93% since ATH followed by Zcash (85%), Basic Attention Token (78%) Stellar Lumens (78%), and Ox (71%).

It's difficult to actually pinpoint one main reason for the decline in prices, as this decline isn't just exclusive to the announced coins but a general problem in the current cryptocurrency market.

Reasons could range from the crackdown ICOs, changes in regulations in countries around the world and the fail of Bitcoin ETFs.

The Decline of Coinbase

The Coinbase exchange has seen its trading volume plummet around 83% this year, while top crypto exchanges such as Binance and OKEx have seen their volumes surge.

Moreover, the number of downloads of the Coinbase app has also seemed to have taken a hit, as crypto prices continue to fall.

The decline of Coinbase's volume may be attributed to various factors but overall could be due to the lack of choice on the platform compared to other exchanges like Binance which has hundreds of coins listed compared to Coinbase's current 5.

The decline of Coinbase's trading volume and app downloads also raises the question regarding its importance for the announced coins in terms of rising prices with their addition on the platform.

However only time will tell on how the general public will react to the new additions. The addition of one of the announced coins could make a big impact on the service. They will be the cheapest ones available on a list of exclusive coins, making their purchase much easier for the mainstream Crypto user.

Which of the coins announced do you hold the most of?

See results

For More Information



© 2018 Deniz Burunlu

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