The crypto market is known for its large price variations. That lead major cryptocurrencies to radically increase and decrease in value in a matter of hours. However, rarely is such a drastic variation seen as OmiseGO’s yesterday. Therefore, we tell you what were the key factors that drove its price.
Competition between cryptocurrencies
If there is a word to describe the crypto world, that would be “competition”. Well, there is no sector of the crypto market, in which there is no fierce fight for spaces.
Whether it is between crypto companies offering financial services like R3 and Ripple. World-class exchanges and global influence like Binance and Huobi. Or between the cryptocurrencies themselves, as is the case of the fight between Ethereum, EOS and Tron.
And it is precisely between the different cryptoactives, where the fiercest competition can be observed. Well, with Bitcoin absolutely dominating most of the crypto market capitalization, the hundreds of other virtual currencies must fight for a much smaller percentage of money and attention.
Therefore, it is difficult for small cryptocurrencies like OmiseGO to obtain the level of interest from the public that they need to succeed. Seeing themselves overshadowed by coins with a longer trajectory and driven by large crypto influencers, such as Ethereum or Bitcoin Cash. What makes external factors necessary that drive these crypto assets.
The rise of OmiseGO
Precisely this would be the case of OmiseGO, because in the last 24 hours the cryptocurrency has accumulated an increase in its price of 34.23%. That has taken it from $ 1.53 per OmiseGO, to the $ 2.05 it is quoted at the time of writing this article.
Of course, this rise in OmiseGO’s price has not been accidental. Rather, on the contrary, it is a consequence of its listing today on Coinbase Pro. The main cryptocurrency exchange currently operating in the United States. What the market has interpreted as an endorsement of the OmiseGO project by one of the largest crypto companies in the world.
And, the increase in the OmiseGO price did not start today. But it has been accumulating since Coinbase announced that it would list the cryptoactive on its platform on May 14. Achieving an increase of more than 200% in its price since then, when each OmiseGo was quoted at just $ 0.75.
In this way, OmiseGO would have benefited from what is known as the “Coinbase effect”. As it is called within the crypto community, the effect generated by the listing of a cryptocurrency within the exchange. Taking currencies like Tezos, Dash, and OmiseGO to increase their price, which would be one of the key factors of their success in the market.
Of course, although this does not guarantee that the OmiseGO price will remain high from now on. This initial boost puts the coin on the radar of the crypto community, and provides it, without a doubt, a significant advantage to compete with other crypto market giants.