Today we see the infamous ‘Coinbase effect’ doing its job again. The price of Polkadot (DOT) rose sharply last night after the major US cryptocurrency exchange Coinbase announced it was listing DOT.
DOT will be tradable from Wednesday on Coinbase Pro, the more advanced version of the crypto trading platform intended for experienced traders. Users can transfer their DOT tokens to their Coinbase Pro accounts since yesterday:
In most cases, a few weeks after a listing on Coinbase Pro, the listing on the regular Coinbase also follows. However, that is not yet the case for Dogecoin (DOGE), which was listed on Coinbase Pro at the beginning of this month.
The DOT price shot up sharply yesterday from $21.45 to a high of $25.95 overnight. That is an increase of no less than 21% in half a day. However, there was still too much resistance around that $26 and the price then corrected to around $25 where DOT hung for the rest of the night. Nevertheless, we see the trading volume increase enormously, which increases the chance of a further rise today. Polkadot is still close to 50% below its all-time high (ATH) of $49.35 from a month ago.
However, the price of brother Kusama (KSM), a kind of testnet for Polkadot, is lagging behind today. Coinbase therefore did not announce a listing for KSM. Around the time you read this, the very first auction of a so-called parachain from Kusama and Polkadot will probably start.
Currently, the top 100 riser in the cryptocurrency market is Amp (AMP). Amp is up 23% today and 90% this week. The AMP price started this huge increase thanks in part to listing on Coinbase.