The native crypto token of DeFi Yield Protocol (CRYPTO: DYP) surged on Tuesday following its listing on Coinbase Global Inc (NASDAQ:COIN).
What Happened: DYP rallied 80% to a five-month high of $0.43 after crypto exchange giant Coinbase listed the token on its trading platform.
Coinbase will add support for DYP, ALEPH, HOPR, MATH, PRQ, and ELA with the Experimental label. Learn more about the Experimental label here: https://t.co/MBMBbYyZ7S
— Coinbase Assets (@CoinbaseAssets) June 21, 2022
Coinbase said it was adding support for DYP and five other crypto assets under the “experimental” label.
“We’ve added an Experimental asset label to certain tradable assets that are either new to our platform or have relatively low trading volume compared to our broader crypto marketplace,” explained Coinbase in a blog post.
“We encourage you to exercise caution with these assets as they come with certain risks, including price swings and canceled orders associated with lower volume and availability.”
As per data from CoinMarketCap, DYP had a daily trading volume of $7.3 million at press time, up 528% in the last 24 hours. To put this into perspective, the leading digital asset Bitcoin (CRYPTO: BTC) had a daily trading volume of $28 billion at the same time.
Last year, Coinbase CEO Brian Armstrong said that the exchange plans to list every crypto asset that met its legal and safety standards.
“But in general, one should not take being listed on Coinbase as an endorsement of that asset (outside of meeting our minimum standards),” said Armstrong at the time.
Data from crypto data platform Messari shows that most smaller cap crypto assets tend to rally significantly following a listing on the crypto exchange, in a phenomenon that has been dubbed “the Coinbase effect.”
See Also: HOW DOES COINBASE MAKE MONEY?
