Usman Salis
Coinbase's announcement of perpetual contracts for the Solana-based meme coin BOME leads to a significant price spike.
Coinbase Adds BOME to Its Trading Platform
The cryptocurrency market has faced a downturn recently, with major assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) in the red. Meme coins have not been spared, with Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF), and Floki Inu (FLOKI) all experiencing dips in the past 24 hours. However, there are notable exceptions, such as the Solana-based BOOK OF MEME (BOME), which has seen a remarkable 10% surge.
BOME's resurgence can be attributed to Coinbase's announcement that it will introduce BOME perpetual contracts starting June 20. This news has driven significant interest and trading activity, contributing to the price rally. BOME, which launched in mid-March, quickly gained traction after its market capitalization surpassed $1 billion, fueled by Binance listing trading pairs such as BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY. Currently, BOME's market cap is over $700 million, making it the 117th largest cryptocurrency.
While BOME has benefited from Coinbase's support, Notcoin (NOT), which will also see perpetual contracts available on June 20, has not experienced a similar price increase and remains in the red. This contrasts with earlier in the year when Coinbase added support for other meme coins like Shiba Inu (SHIB), Floki Inu (FLOKI), and Bonk Inu (BONK) through perpetual futures contracts, which saw varying degrees of positive price movements.
Understanding Perpetual Contracts
Perpetual contracts allow traders to speculate on the future price movements of cryptocurrencies without owning the underlying assets. These contracts do not have an expiration date, offer high leverage, and require users to maintain a certain margin level to keep their positions open. Coinbase's introduction of these products has provided traders with new opportunities to engage with the market, particularly in the meme coin sector.
Coinbase has also supported other popular meme coins, such as Dogwifhat (WIF) and Pepe (PEPE). PEPE perpetual futures were launched on Coinbase International Exchange and Coinbase Advanced at the end of April, leading to increased trading activity. Similarly, WIF saw a significant daily price surge after Coinbase introduced WIF perpetual contracts, highlighting the exchange's influence on meme coin valuations.
Conclusion
Coinbase's ongoing support for meme coins like BOME indicates a growing recognition of these assets within the broader cryptocurrency market. As more traders engage with perpetual contracts and other derivative products, meme coins may continue to experience heightened volatility and interest. The recent price movements of BOME serve as a testament to the impact of major exchange listings on the value of emerging cryptocurrencies.
Usman Salis
