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Coinbase Is Listed, Mainstream Coins Break New Highs: TI Weekly Market Research

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Published on:
April 16, 2021

TokenInsight takes a deep dive into what has happened in the crypto market over the last seven days

Coinbase Is Listed, Mainstream Coins Break New Highs: TI Weekly Market Research

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On Apr. 14, Coinbase, the leading crypto asset spot compliance exchange, was officially listed on the Nasdaq Stock Exchange in the United States. This is a milestone in the history of the development of the crypto asset market, which means the traditional market's final recognition of crypto asset market transactions. 

Under this stimulus, mainstream crypto assets once again stood at new historical highs, while altcoins such as DOGE rushed to the top of the list of crypto assets gains this week under the hype. In this context, investors who are optimistic about the future direction of the crypto asset market account for a higher proportion, and the bull market that began in October last year may be able to obtain a longer duration.

Transaction performance of mainstream crypto assets in the past week, source: tokeninsight.com

Coinbase Goes Public: "Just the Beginning"

On Apr. 14, Coinbase was successfully listed on NASDAQ. As the first officially listed crypto asset exchange, the value of Coinbase has received a positive answer among investors in the traditional market: As of the close, the market value of Coinbase is $60.027 billion, and the search volume of its applications and keywords has also exceeded the history record one after another. 

However, this is just the beginning. After Coinbase is listed, Kraken and other compliant exchanges will also accelerate the pace of seeking to be listed, and this will also bring a "demonstration effect" to the market. Some exchanges that have achieved compliance in other regions may also follow to go public in the country or region where they are located.

People cannot estimate the consequences of crypto asset compliance, but the positive effects of Coinbase's listing as a milestone are still very obvious. On Apr. 14, the price of Bitcoin was once close to $65,000. Among the more than 10 mainstream exchanges tracked by TokenInsight alone, the transaction volume of Bitcoin reached USD 11.14 billion. This week, the transaction volume reached $67.71 billion, compared with last week, when it increased 19.84%. Before and after the listing of Coinbase, the trading volume of perpetual contracts also rose. The total trading volume this week reached $522.1 billion, an increase of 27.16% compared to last week. However, it is worth noting that, as a venture capital product, the high trading volume of perpetual contracts means that speculative sentiment may rise again.

Bitcoin price changes in the past 30 days, as of 14:00 on Apr. 16, source: tokeninsight.com

At present, the market’s expectations for the future mid-term price of Bitcoin have risen to more than $70,000: On the Deribit exchange, the exercise price of about $60,000 to $70,000 due on May 28 and Jun. 25 has been relatively frequent recently, but in September the price of the forward Bitcoin futures contract (currency standard) for delivery and settlement on the 24 also reached $73,628.3 at the highest point.

The trading price of Bitcoin mid-term options on Deribit Exchange, source: deribit.com

OKEx exchange forward futures price changes, as of 15:30 on Apr. 16, source: okex.com

In addition, the skewness and historical volatility that reflect the overall market sentiment have both risen, reflecting an increase in speculative sentiment, but it has not shown strong speculative signals.

Bitcoin's recent skew fluctuations, source: gvol.io

Changes in historical volatility of Bitcoin spot and perpetual contracts in the past 30 days, source: gvol.io

However, although the price of Ethereum has reached a record high of more than $2,500 following the listing of Coinbase and the smooth progress of the "Berlin" hard fork, the good news this week is not significant for Ethereum. From the perspective of transaction volume, whether it is spot or perpetual contract, the volume of Ethereum-related transactions is basically the same as last week, and there is no significant change.

Judging from the performance of forward futures in the past week, Ethereum futures have experienced great volatility. At the peak, the premium once reached more than 20% this Friday, but then the price fell, and the premium rate returned to about 10%. Considering the current value of Ethereum, compared with Bitcoin, investors' expectations for Ethereum are not clear. This Friday a large number of institutional investors chose to sell call options and buy put options, which may also be related to this.

OKEx second quarter forward futures contract price changes, as of 16:00 on April 16, source: okex.com

Distribution of Ethereum options trading volume on April 16, source: gvol.io

Market Focus Temporarily shifts, and the Growth of Non-Mainstream Crypto Assets Slows Down

The listing of Coinbase has turned the market's focus back to mainstream crypto assets. Except for DOGE, which was driven by speculative sentiment, which occupied the top gainer list this week, the gains of other crypto assets were relatively limited, not exceeding 70%. The assets with better performance are mainly non-Ethereum public chains and mainstream currency hard forks, including Ethereum Classic (ETC), BSV, BCH, etc.

List of non-mainstream crypto assets that performed well this week, source: tokeninsight.com

DOGE became the only "dark horse" this week. Driven by speculative sentiment, DOGE's market value has tripled within a week, and now it has reached $35.64 billion, ranking eighth in the crypto asset market. As of 16:30 on Apr. 16, DOGE's trading volume within 24 hours has been close to $20 billion.

Changes in DOGE price and transaction volume in the past 30 days, source: tokeninsight.com

As one of the most famous speculative tokens and "air coins" in the history of crypto assets, some analysts believe that the surge in DOGE means that the market will become more heated, which will promote the opening of a new round of bull market and the continuation of the overall bull market. 

However, the rise of DOGE often means that there is more hot money and uncertainty in the market. Therefore, it is necessary for investors to hedge against future fluctuations and uncertainties in a timely manner. Traders seem to have begun to do this: beginning on Wednesday, some institutional investors began to exchange call options with a strike price of $100,000 into call options with a strike price of $120,000, which means that institutional investors began to take Bitcoin The option positions of other mainstream crypto assets are shifted to hedge against higher market volatility in the future.


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