Degen price surges after Coinbase listing, but gains could be brief

Degen, the second-biggest meme coin on the Base Blockchain, went parabolic on Oct. 2, making it the best-performing cryptocurrency. 

Degen (DEGEN) surged by over 128%, rising to a high of $0.012, its highest level since June 16. It has soared by 300% from its September low. The surge happened after being listed by Coinbase, the largest crypto exchange in the United States.

Cryptocurrencies often jump after being listed by tier-1 exchanges like Coinbase, Binance, Bybit, and OKX. This rally happens due to the general hype among traders and rising expectations that the token will become accessible to more investors.

However, these exchange listing pumps tend to be short-lived, especially when market sentiment is not favorable.

Degen also jumped as the number of smart money holders increased and as volume in centralized exchanges fell. Data from Nansen shows that the volume in exchanges fell by 9% to 3.65 billion, while smart money holders rose to 80, the highest level since July 21.

Degen token held by smart money wallets | Source: Nansen

Degen has grown to become a major player in the meme coin industry, with its market cap reaching $175 million. It is the second-biggest token in the Base network after Brett (BRETT), which has a market cap of over $843 million.

Most of these Base meme coins have performed well in the past few weeks. Mister Miggles has risen by 17% in the last seven days, while mfercoin, Basenji, and Keyboard Cat have jumped by over 10% in the same period. All meme coins in the ecosystem have a market cap of over $1.3 billion.

Their strong performance has helped propel Base into one of the largest layer-2 networks in the industry. Data by DeFi Llama shows that the volume in its DEX networks has risen by 16% in the past seven days to over $4.2 billion. 

Degen price popped

Degen price chart | Source: TradingView

Degen token popped after forming a double-bottom pattern at $0.0028. It rose above the pattern’s neckline at $0.005570, its highest point in September and August.

Degen also jumped above the 50-day moving average, while oscillators have pointed upwards. Therefore, the price will likely erase some of these gains as the post-listing momentum fades. If this happens, the next level to watch will be $0.0055.