The Coinbase Effect on Meme Coins: A Closer Look
The recent announcement by Coinbase of its intentions to support trading for Gigachad (GIGA) and Turbo (TURBO) has sent shockwaves throughout the cryptocurrency market. The tokens, both meme coins, saw swift upward price movements, jumping 37% and 15% respectively in the hour after the announcement from the Coinbase Assets account on X.
The Rise of Meme Coins
Meme coins have gained significant popularity this year, thanks to platforms like Pump.fun that have made it easier and cheaper for anyone to launch tokens. These tokens are typically based on popular memes or cultural references and are often more volatile and riskier than major crypto assets.
Gigachad (GIGA)
Gigachad, based on the meme of a hyper-muscular male model, is a Solana-based token that has risen to prominence this year. The token has an enthusiastic community of supporters, with one user even getting the contract address tattooed on his chest, albeit incorrectly. The token briefly spiked to near $700 million on the roadmap announcement, but has since retraced to just more than $500 million, settling 28% off its all-time high.
Turbo (TURBO)
Turbo, on the other hand, is an Ethereum-based meme coin that was created using a $69 budget and ChatGPT. Its price has surged this year alongside other AI-related crypto tokens, jumping more than 6,000% according to CoinGecko. After jumping to more than a $625 million market cap at the time of the announcement, Turbo has since retraced to a $574 million market cap, 36% off its all-time high.
The Coinbase Effect
The pair makes seven new meme coins listed or soon to be listed on Coinbase’s exchange in recent weeks, following MOG and MOODENG, which Coinbase added to its listing roadmap this week. It is well documented that coins move upward on Coinbase listings, dubbed the “Coinbase Effect.” In the case of each roadmap announcement, a notable price spike occurred within the first hour, with the token falling more slowly in the hours that followed.
Predictions and Insights
Based on the analysis, it is likely that the “Coinbase Effect” will continue to drive price movements for meme coins listed on Coinbase. The recent announcements have shown that Coinbase’s listing can send shockwaves throughout the market, with notable price spikes occurring within the first hour.
Key Takeaways:
- The Coinbase Effect: Coinbase’s listing can send shockwaves throughout the market, with notable price spikes occurring within the first hour.
- Meme Coins: Meme coins are more volatile and riskier than major crypto assets, but have risen in popularity this year thanks to platforms like Pump.fun.
- Gigachad (GIGA) and Turbo (TURBO): Both tokens have seen significant price movements in recent weeks, with Gigachad briefly spiking to near $700 million and Turbo surging more than 6,000%.
- Market Sentiment: The market sentiment is currently bullish, with investors looking to capitalize on the “Coinbase Effect” and the growing popularity of meme coins.
Actionable Insights:
- Investors: Investors should be cautious when investing in meme coins, as they are more volatile and riskier than major crypto assets.
- Traders: Traders should closely monitor the market sentiment and be prepared to take advantage of the “Coinbase Effect” when it occurs.
- Developers: Developers should consider launching their own meme coins using platforms like Pump.fun, as the popularity of meme coins continues to grow.
Conclusion:
The recent announcements by Coinbase of its intentions to support trading for Gigachad (GIGA) and Turbo (TURBO) have sent shockwaves throughout the cryptocurrency market. The tokens, both meme coins, saw swift upward price movements, jumping 37% and 15% respectively in the hour after the announcement from the Coinbase Assets account on X. The “Coinbase Effect” will continue to drive price movements for meme coins listed on Coinbase, and investors should be cautious when investing in these tokens.
