Algorand and Audius skyrocket after Upbit listing, emulating the “Coinbase effect”
- Following listing by Upbit, Algorand and Audius tokens have posted double-digit gains overnight.
- Price rally following Upbit’s listing is the new “Coinbase Effect,” offering the highest average return of any event in the market.
- Analysts have predicted Algorand price will continue its ongoing bull run.
Analysts have noted how recent token listings by South Korean cryptocurrency exchange Upbit have triggered an overnight price rally in the listed crypto.
Upbit effect in play as Algorand and Audius tokens post double-digit gains
Upbit recently listed Aave and 1inch tokens, and the two altcoins witnessed a surge in price. Earlier today, the South Korean exchange listed Algorand (ALGO) and Audius (AUDIO), triggering a rally in these tokens’ prices as well.
Historically, an exchange listing (by Coinbase) offers a higher average return than most other market events; it is referred to as the “Coinbase Effect.” Upbit is emulating the “Coinbase Effect,” and a listing announcement by the exchange is a driver of the tokens’ price rally.
@krugermacro, a cryptocurrency analyst, commented on Upbit listings of tokens,
Upbit listings are the new Coinbase listing. First was $AAVE and $1INCH, now $AUDIO and $ALGO.
— Alex Krüger (@krugermacro) November 18, 2021
81% of wallet addresses holding ALGO are currently profitable based on IntoTheBlock data. Pseudonymous cryptocurrency analyst @AltcoinSherpa recently analyzed the ALGO price trend.
The analyst believes that he expected a slight bounce in ALGO price due to low volume and low volatility. @AltcoinSherpa believes that ALGO’s price rally is bizarre.
$ALGO: I'm very wrong on this one...I thought distribution all the way. I was expecting a small bounce off the lows, not something like this. Bizarre... pic.twitter.com/bBrJoUCyaN
— Altcoin Sherpa (@AltcoinSherpa) November 18, 2021
The Upbit listing announcement can explain the ALGO price rally. Former White House Director of Communications Anthony Scaramucci was recently quoted in a interview,
Well, I think gold will be okay, but it’s sort of a flatline situation. Can it go up modestly? Yes, but I think Bitcoin and properties like Ethereum and Algorand are gonna go up exponentially just because of the scalability [and] security issues around them.
The two tokens ALGO and AUDIO, have indicated bullish relative social and market activity, implying bullish price action. The carbon-negative cryptocurrency is likely to continue its ongoing price rally.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
