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Solana must thank Coinbase otherwise it risked the worst

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While it is true that the slight rally in the market was good for Solana (SOL) price, another event was going to end up fueling the rise of the crypto currency, Visa. Indeed, the American exchange Coinbase has decided to list for the first time two tokens from the Solana ecosystem. The news was quickly noticed on the crypto price which took almost 25% a few hours after the announcement.

The Ethereum competitor badly needed some good news to avoid the trap of the bearish “death cross” technical pattern. Especially since it was accumulating criticism because of incidents on his blockchain. This lightning performance allows the SOL to move completely away from the January low ($80). Now the goal is to break the resistance at $122.5.

FIDA And Orca: Two SPL Tokens On Coinbase

The American exchange has decided to change its token listing policy. Instead of listing all ERC-20; i.e. native Ethereum tokens, it wants to introduce tokens from other ecosystems like Solana and Avalanche on its trading platform. This is how Bonfida (FIDA) and Orca (ORCA) ended up finding their chance to be listed on the largest American crypto broker.

Yesterday, in a message posted on twitter, Coinbase announced the addition of the two SPL Tokens on its platform. It should be noted that the term SPL token is the equivalent of ERC-20 tokens for Solana.

Inbound transfers for Bonfida (FIDA) and Orca (ORCA) are now available on @Coinbase and @CoinbaseExch in regions where trading is supported. Trading is not enabled at this time. Trading will begin from 9 a.m. PT on Tuesday, February 1, if liquidity conditions are met.

ORCA and Bonfida are two decentralized exchanges that are housed on the Solana blockchain.

Solana’s Price Soars After The News

This is what analysts call: the Coinbase effect. It is in fact an increase in the price of the crypto following its introduction on the exchange. In the past, several cryptos that have benefited from the Coinbase effect. Examples include: Shiba Inu, crypto.com, Propy (PRO). As for Solana, its price indirectly benefited from the Coinbase effect. But why ?

This listing has just rewarded the prowess of the Solana ecosystem. As we said at the beginning of the article, this is the very first time that SPLs have joined the prestigious American exchange. So, this will boost the adoption of the Solana blockchain.

On the technical analysis side, the price of SOL has gone from $88 to $112 at the time of writing this article. According to data available on Coingecko, the crypto’s 24-hour trading volume increased by 111%.

However, ORCA and FIDA performance was less flamboyant than their mother. At the time of writing this article, the value of ORCA only increased by 3.05% while that of FIDA increased by 2.66%

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