Coinbase listing announcement causes MKR to surge 40%

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Updated on Jun 15, 2024

Reading time 3 minutes

Coinbase recently revealed plans to once again try and list MakerDAO's token, MKR.
Last time when the exchange tried it, the move failed due to low liquidity.
As the exchange is getting ready to try again, investors' interest helped the coin surge by 40% in 24 hours.

Coinbase Pro recently published a new announcement, stating that it plans to add support for MakerDAO’s token, Maker (MKR). The same announcement was made back in April 2019, although the attempt back then failed, due to limited liquidity.

The largest US exchange is now ready to try again in 2020, revealing that the support for MKR deposits will start on June 8th.

MKR skyrockets by 40% on Coinbase’s announcement alone

Even though the move still has a chance to fail again, the exchange’s tenacity seems to have attracted major attention to MKR, which skyrocketed by 40% as a result.

As a result, the Maker’s price surged to $500, which is a level that was not seen since before the mid-March crypto price crash. According to what is known, Coinbase will try to launch MKR in all supported jurisdictions, apart from New York. This will expose it to thousands of investors.

The MKR trading volume already spiked, but the project’s social media mentions have yet to follow. This could indicate that there is still room for the coin to increase, if popular platforms housing crypto communities, like Reddit and Twitter, start giving it greater attention.

2/ price uptick, while social volume has yet to take off. It looks like we're still in the early stages in crowd reaction to this news, so we advise watching social volume spikes closely to figure out entry and exit points over the impending week of an inevitable volatility.
— Santiment (@santimentfeed) May 29, 2020

This move clearly means a lot to Coinbase, which spent millions at supporting DeFi ecosystems on Ethereum. The company’s product manager, Jacob Horne, commented on why this is by saying that “DeFi, or decentralized finance, is an essential part of an open financial system. DeFi tools are censorship-resistant, unbiased, programmable, and available to anyone with a smartphone. For this hackathon, we’re focusing on bringing DeFi to the world.”

MKR following in OMG’s footsteps

Maker’s surge is, by all means, unique, although it is not the only one that followed after Coinbase Pro announced that it is accepting a new coin. A similar development took place only a week ago, when Coinbase listed another token — OmiseGo’s OMG.

This is another Ethereum-based project that is focusing on transparent P2P transactions in real-time. The coin saw a 200% increase from the time of the announcement, only this altcoin did not wait before it dominated social media mentions.

For a lot of investors, this means that it is more than worth keeping an eye on Coinbase’s business decisions, as the so-called ‘Coinbase Effect’ seems to be back. Simply put, the exchange’s support for specific assets grants them a lot of attention from the investors, which eventually causes a strong price surge.