While the change in Coinbase Pro fees is still the trending topic in the cryptocurrency space, Stellar (XLM) is enjoying the Coinbase effect that comes from Coinbase listing. The Coinbase effect is an informal phrase that is used to refer to a situation where the price of a token suddenly surges higher against the USD due to a Coinbase listing.
Coinbase Effect: Stellar (XLM) Gets Listed On Coinbase
Coinbase is the most popular cryptocurrency exchange in the United States. So, when a token gets listed on Coinbase, the market sentiment becomes positive and the token usually begins to outperform the rest of the market. During a bear market, the Coinbase listing effect is usually a big deal. This is because as the bears take control of the market, most cryptocurrencies start losing the price value against the USD. So, it’s kind of a big deal for a cryptocurrency, especially a small market capitalization altcoin, to outperform the bear market after a Coinbase listing.
The cryptocurrency wallet service provider recently added Stellar (XLM) on its list of compatible tokens. The company announced that users can now enjoy buying, selling, and storing Stellar (XLM) on the platform. It isn’t just available on the website but on all the Coinbase apps on Android and iOS devices. According to the announcement, XLM will be available for all Coinbase customers except for those in the United London and the state of New York.
Stellar (XLM) Price Today – XLM / USD
After the announcement, the price of Stellar started outperforming the rest of the cryptocurrency market which was in red. At the time of writing, XLM was trading at $0.114175. This means that it is up by 4.74% against the USD and up by 3.95% against BTC. The 24-hour trading volume is $300,654,042 and the market capitalization is $2,194,882,630.
Coinbase Pro Fees Followed By XLM Listing
A few days ago, Coinbase Pro, the trading platform owned by Coinbase, announced that users can now trade XLM tokens. Shortly after, the company announced that it would be activating changes in its fee structure later in the week. With the new fee structure, higher value customers will enjoy a drop in Coinbase Pro fees while bottom tier traders will have to pay more.
The new Coinbase Pro fees structure has attracted mixed reactions in the cryptocurrency community. The company said that all its takers and makers who don’t spend up to $100,000 will have to pay Coinbase Pro fees of 0.040%. However, those who spend between $100,000 to $1 million will pay 0.30%. In this case, the fee will be shared in half and paid by the makers and takers. Those who spend between $100 million and $1 billion have their Coinbase Pro fees drop by 50%.
The company said that the new Coinbase payment fee structure will increase liquidity. However, some people feel it is unfair to the third tier traders. There is currently a heated debate about this issue on cryptocurrency Twitter.
What do you think? Will the effect of Coinbase listing on XLM last? What’s your opinion about the new Coinbase fee structure? Comment below.