This Altcoin Soared 75% After Coinbase Gave It a Boost — Find Out Why

TL;DR

• Amid broad market gains, one lesser-known altcoin surged ahead of the pack, climbing 75% in a single day.

• Its pump came shortly after Coinbase listed it with an Experimental label.

The Major Increase

The cryptocurrency market has been booming in the last several days, with Ripple (XRP), Ethereum (ETH), Stellar (XLM), and many more posting serious price jumps. However, the lesser-known altcoin Caldera (ERA) outperformed all top 100 coins in terms of daily gains, spiking by nearly 75%.

Despite its surge, the asset remains far from crypto’s elite, with a market capitalization of approximately $217 million. The impressive performance was likely fueled by Coinbase’s decision to add the token to its iOS & Android applications with the “Experimental” label. 

“Coinbase customers can log in to buy, sell, convert, send, receive, or store these assets,” the announcement reads.

The disclosure comes a few hours after the exchange revealed it will add support for ERA on the Ethereum network. It also warned users against sending the asset via other networks, as this could result in the loss of funds.

Cryptocurrencies included in the Experimental label section are either newly added to the platform or have relatively low trading volume. Coinbase has previously advised people to pay extra attention to such coins, as they come with certain risks, such as increased price volatility.

The firm’s backing typically has a positive influence on the price of the involved cryptocurrencies, due to factors like increased liquidity, improved accessibility, and a reputational boost. Earlier this year, the meme coin Toshi (TOSHI) validated that thesis with a price surge of over 110% shortly after being added to Coinbase’s roadmap. 

When Coinbase Says Goodbye

The price reaction of the cryptocurrencies that are delisted from the exchange is usually much different. Two months ago, Coinbase disclosed that it will terminate all trading services with Helium Mobile (MOBILE), Render (RNDR), Ribbon Finance (RBN), & Synapse (SYN). Some of the affected plunged by around 15% after the news.

Similar things are observed when other crypto behemoths remove assets from their platforms. In this article, you can check which cryptocurrencies crashed by over 35% after Binance withdrew its support.