Degen price surges after Coinbase listing, but gains could be brief

Degen, the second largest meme coin on the Base Blockchain, went parabolic on October 2, making it the best-performing cryptocurrency.

Degen (DEGEN) increased by over 128% to $0.012. This was the highest level since June 16. It’s up 300% from its September low. The increase comes after it was listed by Coinbase, the largest US crypto exchange.

GM Degens! Great news: $DEGEN is listed on Coinbase Spot trading and is ranked #4 @basis adverb. This journey has been crazy and we have a lot ahead of us. Thank you very much to Degen and Base family for being with us. Let’s keep building! https://t.co/m9j1FcTYMs

— Degen 🎩 (@degentokenbase) October 1, 2024

Cryptocurrencies often make a splash after being listed by tier-1 exchanges such as Coinbase, Binance, Bybit, and OKX. This rally occurred due to general excitement among investors and growing expectations that the token will become accessible to more investors.

But these listing pumps tend to be short-lived, especially when market sentiment is not positive.

As the number of smart money holders increased and volume on centralized exchanges decreased, Degen also jumped. Data from Nansen shows that volume on exchanges fell 9% to 3.65 billion, while smart money holders rose to 80, the highest level since July 21.

Degen token held by smart money wallets | Source: Nansen

Degen has grown to become a major player in the meme coin industry, with its market cap reaching $175 million. It is the second largest token on the Base network after Brett (BRETT), which has a market cap of over $843 million.

Most of these Base meme coins have performed well over the past few weeks. Mister Miggles is up 17% in the last seven days, while mfercoin, Basenji and Keyboard Cat are up over 10% in the same period. The market cap of all meme coins in the ecosystem is over $1.3 billion.

Their strong performance has helped Base become one of the largest layer-2 networks in the industry. Data from DeFi Llama shows that volume on DEX networks has increased by 16% over the past seven days, reaching over $4.2 billion.

Degen price skyrockets Degen price chart | Source: TradingView

Degen token skyrocketed after forming a double-bottom formation at $0.0028. It broke above the neckline of the formation at $0.005570, which was its highest point in September and August.

Degen also jumped above the 50-day moving average, while oscillators pointed upward. Therefore, as post-listing momentum fades, the price will likely erase some of these gains. In such a case, the next level to watch will be $0.0055.