Messari, an analyzer for cryptocurrencies, has provided proof of the ‘Coinbase Effect’ being true. On his findings, Messari stated that the popular notion of Coinbase listings performing better than other exchanges is factual.
Messari, a crypto analytics provider, filed a report showing that the popular ‘Coinbase effect’ belief is actually true. This notion states that listings done on Coinbase perform better than listings done on other exchange platforms. However, Messari went ahead to clarify that the difference is not as huge as investors expect.
Analysis of the performance of Coinbase Listings
Messari conducted an analysis of the performance of 28 Coinbase Listings done in the past five days and compared them with those done on Binance Listings, FTX Listings, Gemini Listings, OKEx Listings and Kraken Listings. The listings were compared over the same duration of time.
The research done by Messari stated that the listings that were done on Coinbase had the highest average return of 91% but the effect realized was not consistent. The 28 tokens that were listed on Coinbase were studied over a period of five days and the data collected illustrated that the returns ranged from a 32% loss to an upward gain of 645%. The tokens listed on the other exchanges experienced returns ranging from a 25% loss to a 60% gain with the average gain realized from the exchanges ranging at 20%.
Messari also illustrated that the returns realized from Coinbase were influenced by external factors that contributed to the high returns. These factors affected Coinbase listings as soon as they were done with a gain of 493% on Civic and 645% on Distict0x.
The data also showed that listings done on OKEx came second on average with the tokens listed here accruing a 20% gain. This was followed by Kraken with a 15% gain and FTX with a 12% gain. The lowest gains were recorded on Binance, which recorded 0% gains while Gemini recorded losses.
The Coinbase effect may be influenced by the popularity and heavy branding of the exchange platform. It could also be because of the regulations put forward by the US regulators for cryptos, deterring many agencies and issuers from operating in the US market.
Currently, Coinbase is the biggest retail crypto market according to the research done by Messari. The huge gains realized from this exchange may also be because of many investors rushing to realize gains from the crypto market that has recently been made accessible.
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