- The cryptocurrency market has been characterized by notable volatility, with leading assets facing significant price drops, though a Solana-based meme coin managed a 10% daily surge.
- This unexpected rally is likely tied to Coinbase’s recent decision to permit specific trading services for the coin.
- A notable detail: the Solana-based meme coin’s resurgence is linked with upcoming perpetual contracts on Coinbase, scheduled to start on June 20th.
Read our latest in-depth analysis of the cryptocurrency market, focusing on the recent surge in a Solana-based meme coin amidst a broader market pullback.
Surprising Uptick Amid Market Downturn
The past few days have seen the cryptocurrency market dive significantly, with major assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) all showing deep declines on a weekly basis. The meme coin sector hasn’t fared much better, with popular coins such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), DogeWithHat (WIF), and Floki Inu (FLOKI) all experiencing substantial dips over the past 24 hours. However, an exception to this trend is the Solana-based meme coin, Book of Meme (BOME), which surprisingly spiked by 10%.
This upswing followed an announcement from crypto exchange Coinbase about the introduction of BOME perpetual contracts, set to commence on June 20. This news appears to have catalyzed the token’s recent performance.
After debuting in mid-March this year, BOME quickly caught the attention of market participants, climbing to a market capitalization that exceeded $1 billion shortly thereafter. This initial rally was probably driven by Binance’s listing of various trading pairs for BOME, including BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY. Presently, BOME’s market cap is over $700 million, positioning it as the 117th largest cryptocurrency.
Contrastingly, Notcoin (NOT), another cryptocurrency slated to have perpetual contracts available on Coinbase by June 20, has not seen a similar price boost, remaining in decline.
Coinbase’s Influence on Meme Coins
Earlier this year, Coinbase also extended support to other meme coins like Shiba Inu (SHIB), Floki Inu (FLOKI), and Bonk Inu (BONK), introducing perpetual futures contracts for these coins. These trading products, referred to as 1000SHIB-PERP, 1000FLOKI-PERP, and 1000BONK-PERP, allow traders to speculate on the future prices of cryptocurrencies without the need to own the underlying assets.
These contracts, which lack an expiration date, offer high leverage and require traders to maintain a margin to keep their positions open. Other notable meme coins such as DogeWithHat (WIF) and Pepe (PEPE) gained Coinbase’s approval earlier. For instance, PEPE perpetual futures were launched on both Coinbase International Exchange and Coinbase Advanced in late April this year. Before this, WIF experienced a 15% daily price surge following Coinbase’s introduction of WIF perpetual contracts.
Conclusion
In summary, while the broader cryptocurrency market has faced significant challenges, certain meme coins have bucked the trend, thanks in part to strategic support and listings by major exchanges like Coinbase. These developments underscore the influence of trading platforms on cryptocurrency prices and highlight the dynamic nature of the crypto ecosystem. As the market evolves, staying attuned to exchange announcements and their potential impact on asset prices will be crucial for traders and investors alike.
