- Solana-based meme coin Moo Deng (MOODENG) surged over 80% in an hour after Coinbase announced plans to list the token
- Listing on major exchanges like Coinbase typically leads to price increases for cryptocurrencies, known as the “Coinbase effect” as they become more accessible to mainstream traders
- Meme coins like Moo Deng can make traders huge profits but are also highly volatile, previously surging and then crashing in value
Solana-based meme coin Moo Deng (MOODENG) shot up over 80% within an hour after Coinbase announced plans to list the token. The price spike highlights the ‘Coinbase effect’ and the rise of meme coins in 2021.
Dramatic Price Surge for Moo Deng
Data from CoinGecko shows the meme token is now priced at about $0.57. In a 24-hour period, MOODENG has jumped by nearly 54%. The token, which gained traction in September, is still down from its all-time high price of $0.68 it touched in November. It only has 16% more to rise until it beats that level though.
The Coinbase Effect
Coinbase made the announcement Monday that the token would be listed on its exchange, adding Moo Deng to its roadmap. Meme coins listed on the roadmap in recent weeks have typically become available for trading later the same day. When Coinbase lists tokens they typically go up in price as traders consider them to be more legitimate, not to mention far more accessible to mainstream traders. This is known as the ‘Coinbase effect’.
Conclusion
Moo Deng is the latest meme coin to ride a wave of hype and volatility. Its parabolic rise after being added to Coinbase’s roadmap highlights the ‘Coinbase effect’ where exchange listings can catalyze major price gains. Meme coins have become an unpredictable but lucrative niche within the crypto markets this year. It will be interesting to see if Moo Deng can sustain its newfound momentum.
