- Recently, the value of a crypto asset called Matic increased by over 60% after it was revealed that Coinbase was considering adding the altcoin to its platform.
- This phenomenon of unexplained price surges is what most experts refer to as the ‘Coinbase effect’.
Recently, the folks over at Coinbase showcased their willingness to add several new cryptocoins to their platform. One of the listed probables was MATIC — a currency’s whose value shot up by over 60% within a span of just 24 hours after the above-linked blog post was released.
To be a bit more specific, we can see that Matic’s price grew from around 1 US cent to nearly $0.17. While on paper this spike may not seem like much, but for investors holding significant quantities of the crypto, the profits could be quite significant.
For those of our readers who may not be aware of what Matic is, it can essentially be thought of as a Layer 2 scaling solution (built atop the Plasma network) that achieves scale by making use of sidechains as well as decentralized Proof-of-Stake (PoS) validators.
Following Matic’s meteoric price rise over the weekend, the currency had already lost a huge chunk of its gains by late yesterday afternoon — this phenomenon is what experts like to call the “Coinbase effect.”
Other currencies that too have experienced the same effect include Decred, Dash, Ripple and Algorand. In XRP’s case, when Coinbase announced that it was considering listing the premier token last September, its price surged past the $0.50 mark.