In previous bull markets, one of the most consistent price movers for cryptocurrency projects was being listed on Coinbase, a phenomenon that became known as the ‘Coinbase effect’.
The recent announcement that Polygon (MATIC), SKALE (SKL) and SushiSwap (SUSHI) would be added to the exchange and begin trading on March 11 has proven that the Coinbase effect remains potent as the tokens witnessed record trading volume and double-digit price movements since the listing took place.
Data from Cointelegraph Markets and TradingView shows that SKL has been the biggest beneficiary of the Coinbase effect, increasing more than 200% since the announcement on March 9, while MATIC has grown by 88% and SUSHI has gained a modest 7%.
SKALE describes itself as an ‘elastic network’ that is designed to bring scalability to the Ethereum (ETH) network by boosting transaction capacity and reducing latency as a way to ensure payments can be conducted as inexpensively as possible.
According to the project’s website, Solidity smart contracts can run “thousands of times faster at a fraction of the mainnet cost” and the platform is well-suited for gaming and content streaming services that get bogged down by congestion on the main Ethereum network.
Congestion and high transaction costs on Ethereum have once again emerged as a significant issue in the cryptocurrency community over the past two months as the lure of decentralized finance and non-fungible tokens have led to significant increases in network activity and gas fees.
Polygon (MATIC) has been on a roll so far in 2021, with the Coinbase listing being the most recent event that has boosted the altcoin’s price.
Previous significant developments include the rebranding from Matic to Polygon, which was done as the project pivoted toward becoming the “Polkadot of the Ethereum network,” by focusing on…