ARPA Crypto Token Rallies 45% After Coinbase Pro Listing

The native crypto token of the ARPA Chain ARPA/USD surged 45% after news of its listing on Coinbase Global Inc COIN.

What Happened: ARPA hit an all-time high of $0.1921 on Tuesday and the coin’s daily trading activity surged by 731% to over $1.3 billion.

The ARPA chain is a layer 2 solution for privacy-preserving computation, enabled by Multi-Party Computation (MPC).

The token’s massive intra-day price rally followed a listing announcement from Coinbase Pro.

Coinbase also announced trading support for Bounce Token AUCTION/USD and Perpetual Protocol PERP/USD.

The AUCTION token observed a similar rally, rising by 30% to an intraday high of $42.39. Trading volume in the token was up by more than 1,268% at the time of writing.

PERP, on the other hand, briefly surged by 20% to a price of $19.65 but quickly erased all listing-related gains. At press time, the coin was trading at $14.48, down 5% over 24 hours.

Many crypto tokens rally significantly following a listing on a major exchange in a phenomenon dubbed “The Coinbase Effect” by market analysts.

“The economic rationale behind the effect is straightforward. When a cryptocurrency is listed on a popular exchange it immediately gains exposure to a new set of market participants,” Messari analyst Roberto Talamas said in a report.

On Monday, NuCypher’s crypto token surged by 1,000% after being listed on popular Korean crypto exchange Upbit.

Price Action: The wider crypto market saw a 1.09% increase in overall market capitalization, which rose to $2.49 trillion in the last day. The leading digital asset Bitcoin BTC/USD gained 2.63% over 24 hours and was trading at $62,300 at pres time.

Photo: Joshua Sortino on Unsplash.