What happened
Amid a broad crypto sell-off that saw the overall crypto market lose 2.3% of its value over the past 24 hours, Stacks (STX) was a big outperformer today. This token, ranked No. 50 in market capitalization among all tokens, led the way with a 10% increase over the past 24 hours, as of 2:50 p.m. ET on Tuesday.
News that Stacks would be listed on Coinbase Global (COIN 2.01%) and available for trading tomorrow has led to this surge.
Image source: Getty Images.
So what
On a day like today, when the market is bright red, picking through the tokens that came out ahead in a big way can be a valuable exercise. Seeing which tokens have unique catalysts is easier to do on days like this, when there are only a few winners.
Stacks is the latest recipient of the "Coinbase effect," a term coined (no pun intended) for tokens seeing impressive appreciation following a Coinbase listing. Essentially, the increased liquidity that large-scale exchanges provide allow for a broader investor base and more eyeballs on the specific tokens that get listed. In bull markets, this has led to returns in excess of 90% in the five days following a Coinbase listing.
Now what
It should be noted that while inbound transfers for the STX coin are now available on Coinbase, this token will only be available for trading should liquidity conditions be met. Thus, there's still some uncertainty with respect to this listing. However, investors looking to get in front of the official announcement appear to be buying Stacks en masse today.
For now, Stacks looks like an interesting Web3 project, with growth that's starting to be recognized by the big exchanges. Should this trend continue, Stacks could be a compelling token to watch this year.