Courtesy: httpss://www.coinbase.com/
- Coinbase’s debut on Wednesday was a major success after surpassing its reference price of $250 by 52% to reach a market value of $85 billion.
- Key developments have been recorded including surging demand for trading applications influenced by the Coinbase listing.
Coinbase ($COIN) price opened trading on Nasdaq at $381, pushing the company’s value to $85.7 billion. In intraday trading, shares reached as high as $429 which saw the valuations rise as high as $100 billion. Prices have since settled at around $340. The listing was a major milestone, not only for the company that launched in a two-bedroom apartment but for the entire crypto industry. Once regarded as a scam and an industry for criminals, it has become a trillion-dollar industry represented by companies on the New York Stock Exchange.
One of those interested in Coinbase stock has been Cathie Wood’s Ark Invest. The investment firm has made several purchases through three exchange-traded funds. On the stock’s debut, the funds accumulated 749,205 $COIN shares, estimated at $246 million. On Thursday, it added an additional 341,186 shares worth roughly $110 million.
In the wake of the listing, top digital assets have soared to reach all-time highs. Bitcoin (BTC) and Ethereum (ETH) have led with this, reaching $64K and $2,500 respectively. Other notable performers are XRP, Dogecoin (DOGE) and Litecoin (LTC.) These coins have benefited from exposure to mainstream investors.
Trading apps surge signals retail interest
In the last few days, there has been a significant increase in trading app downloads, primarily Robinhood and Coinbase. On Apple’s App Store, the two have surpassed the social media sensation TikTok, as well as Instagram and YouTube. The trading applications signify a growing demand by retail investors for cryptocurrencies. Despite Robinhood coming under fire earlier in the month for halting GameStop stock, it remains popular among retail traders.
Curiously, Coinbase has failed to profit from the current Dogecoin rally, having missed listing the digital asset. DOGE has in the last couple of days earned roughly 500%, its market cap reaching over $45 billion. One of the highest traded coins, rival trading platforms have profited from DOGE mooning.
Coinbase announces ETH2 staking
Two months after launching the Ethereum 2.0 staking waitlist, Coinbase on Friday revealed that customers can now get staking rewards. In a blog post, the exchange revealed that customers staking Ethereum 2.0 will earn as much as 6% in interest. This will encourage holders to keep the token locked on the exchange and long-term holding of the digital asset.
Coinbase was late in offering this with its rival exchanges like Binance offering staking rewards since late last year.
Scaramucci: Coinbase listing is a wake-up call for banks
While the listing was a major event for the crypto community, SkyBridge Capital founder, Anthony Scaramucci was surprised that banks did not react. In an interview with CNBC, the former Whitehouse communications director, stated,
What I’m surprised about, frankly, is there isn’t a wake-up call at the banks, the commercial banks like there was for the Netscape IPO in 1995 at Microsoft,
Furthermore, he admitted that he has bought this stock and that the stock was trading like Google and Facebook did in their first few days. As we know, these are some of the highest-rated stocks, placing Coinbase in the right company.
