Benzinga | Oct 19, 2021 08:52AM EDT

ARPA Crypto Token Rallies 45% After Coinbase Pro Listing

The native crypto token of the ARPA Chain (CRYPTO: ARPA) surged 45% after news of its listing on Coinbase Global Inc (NASDAQ:COIN).

What Happened: ARPA hit an all-time high of $0.1921 on Tuesday and the coin's daily trading activity surged by 731% to over $1.3 billion.

The ARPA chain is a layer 2 solution for privacy-preserving computation, enabled by Multi-Party Computation (MPC).

The token's massive intra-day price rally followed a listing announcement from Coinbase Pro.

Inbound transfers for ARPA, AUCTION & PERP are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 9AM PT on Tuesday October 19, if liquidity conditions are met. https://t.co/9izz4DEPrE pic.twitter.com/Ltw9pdYAm9

-- Coinbase Pro (@CoinbasePro) October 18, 2021

Coinbase also announced trading support for Bounce Token (CRYPTO: AUCTION) and Perpetual Protocol (CRYPTO: PERP).

The AUCTION token observed a similar rally, rising by 30% to an intraday high of $42.39. Trading volume in the token was up by more than 1,268% at the time of writing.

PERP, on the other hand, briefly surged by 20% to a price of $19.65 but quickly erased all listing-related gains. At press time, the coin was trading at $14.48, down 5% over 24 hours.

Many crypto tokens rally significantly following a listing on a major exchange in a phenomenon dubbed "The Coinbase Effect" by market analysts.

"The economic rationale behind the effect is straightforward. When a cryptocurrency is listed on a popular exchange it immediately gains exposure to a new set of market participants," Messari analyst Roberto Talamas said in a report.

On Monday, NuCypher's crypto token surged by 1,000% after being listed on popular Korean crypto exchange Upbit.

Price Action: The wider crypto market saw a 1.09% increase in overall market capitalization, which rose to $2.49 trillion in the last day. The leading digital asset Bitcoin (CRYPTO: BTC) gained 2.63% over 24 hours and was trading at $62,300 at pres time.

Photo: Joshua Sortino on Unsplash.