The Coinbase effect and the strong fundamentals make the polygon (MATIC) and scale rise higher

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In previous bull markets, one of the most consistent price moves for cryptocurrency projects was listed on Coinbase, a phenomenon known as the “Coinbase Effect”.

The recent announcement that Polygon (MATIC), SKALE (SKL) and SushiSwap (SUSHI) will be added to the exchange and will start trading on March 11th has shown that the Coinbase effect will continue to be strong as the tokens are one Record trading volumes and double digit price movements have taken place since listing.

MATIC / USDT vs. SKL / USDT vs. SUSHI / USDT 4-hour chart. Source: TradingView

Data from Cointelegraph Markets and TradingView show that SKL has been the biggest beneficiary of the Coinbase effect, up more than 200% since it was announced on March 9, while MATIC has grown 88% and SUSHI has grown a modest 7%.

SKL / USDT

SKALE describes itself as an “elastic network” designed to improve the scalability of the Ethereum Network (ETH) by increasing transaction capacity and reducing latency to ensure payments can be made as cheaply as possible.

According to the project’s website, Solidity smart contracts can run “a thousand times faster at a fraction of the mainnet cost,” and the platform is well suited for gaming and content streaming services stalled by congestion on Ethereum’s main network devices.

SKL / USDT 4 hour chart. Source: TradingView

Overload and high transaction costs on Ethereum have once again become a significant problem in the cryptocurrency community in the past two months, as the lure of decentralized funding and non-fungible tokens has led to a significant spike in network activity and gas charges.

MATIC / USDT

Polygon (MATIC) already played a role in 2021, with the Coinbase listing being the most recent event to drive the altcoin price up.

Previous significant developments included the renaming of Matic to Polygon, which was carried out when the project became the “Polkadot of the Ethereum Network” by bringing interoperability with separate blockchain networks to the Ethereum ecosystem.

Since the rebranding, several projects have been integrated into the Layer 2 solution or migrated to it, which offers significantly reduced transaction costs and faster confirmation times.

MATIC / USDT 4-hour chart. Source: TradingView

MATIC’s price has risen 150% since the Coinbase listing was announced, and on March 12, the altcoin hit a record $ 2.6 billion in 24 hours.

VORTECS ™ data from Cointelegraph Markets Pro identified an optimistic outlook for MATIC on March 6, ahead of the recent price hike.

The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS ™ Score (green) vs. MATIC price. Source: Cointelegraph Markets Pro

As can be seen in the table above, the VORTECS ™ score hit a high of 81 on March 6th, three days before the Coinbase listing was announced. After the VORTECS ™ value hit a low of 48 on March 8th After declining, it rose to a new all-time high of 89 about two days before the price rally.

SUSHI / USDT

SushiSwap (SUSHI) was the third coin to be listed on Coinbase this week and received a more subdued response, despite the fact that SushiSwap is one of the best decentralized exchanges and currently has $ 4.21 billion on its log.

Decentralized finance has been one of the hottest topics in the cryptocurrency sector since December 2020, but has seen a noticeable decline in activity in recent weeks as non-fungible tokens have come into the spotlight.

SUSHI / USDT 4 hour chart. Source: TradingView

SUSHI had previously seen prices soar 675% in 2021, from a low of $ 2.69 on Jan 1st to an all-time high of $ 20.57 on March 2nd. So it’s not entirely unexpected that the price reacted to the 675% muted announcement on a Coinbase list.

A notable correlation between the three projects discussed is offering solutions to the current problems facing the Ethereum network.

While the Coinbase effect may have helped boost the recent price hikes for each project, due to the larger demands of the cryptocurrency community and the solutions offered by these protocols, MATIC, SKL and SUSHI are well positioned to take further advantage as the active participation in the cryptocurrency ecosystem will continue to increase.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.