Why Coinbase, Shiba Inu and Polkadot Are Up Today
The bull run for the cryptocurrency has continued on Tuesday, with most major cryptos in at least the mid-single digits. Investors seem to be continuing their momentum even further EthereumMerge and it helps that there has been some positive economic news recently.
coinbase global (coin 1.14%, Was a big gainer today, rising up to 10.3% in trading and 9.3% higher as of 12:15 a.m. ET. Shiba Inu (Shib -0.70%, This morning’s high was 12.7 percent higher than Monday afternoon’s low, and polka dot (dot 1.17%, jumped 10.4% at the time.
For Coinbase, the move is largely because the crypto market is active again, which means more trading fees will be generated, and the company is taking market share. According to CoinMarketCap, Coinbase’s exchange volume has increased by 32% over the past 24 hours to $3.2 billion, which puts it ahead of FTX in the exchange market. Coinbase makes money on trading volume, not cryptocurrency price, so this growth will augur well for the business.
Shiba Inu and Polkadot are on broader crypto move and stock market rise. The values of these tokens are not directly affected by the Ethereum merger, outside of potentially bringing more people to the cryptocurrency.
It certainly helps that the major stock indexes are big today. Nasdaq Composite as I’m writing 2.4% is up and S&P 500 Up 2.1%. Crypto prices tend to exaggerate market movements because they are considered high-risk assets, so stock market movements are definitely helping.
I don’t think today’s move is particularly meaningful for Shiba Inu or Polkadot as they are following the market overall. But Coinbase may be in a different position. If the crypto market revives and trading revenues increase, Coinbase could do much better in the second half of the year than investors expected.
What I am looking for is the constant volume of business and number of users in the crypto industry. It would be good for Coinbase and potentially cryptocurrencies if the industry as a whole grows.
We may also see some increased stability following the introduction of several major liquidations in the cryptocurrency market. The bankruptcy of Three Arrows Capital brought many debts and risks, but the outcome is better understood today than it was a few weeks ago.
In the long run, this is still an industry that may be favored due to the impending disruption from crypto, but it has been a shaky ride and for now it means more big moves for investors.
Near Travis Hoium Coinbase Global, Inc. And there are positions in Ethereum. Coinbase Global, Inc. at The Motley Fool. And Ethereum has posts and recommends it. The Motley Fool has a disclosure policy.