Coinbase lists Solana’s ERC-20 token version and competes with DeFi platforms
Coinbase aims to become the number one player in the market, and their latest move by the company aims to be a step in that direction. The exchange is moving closer to listing Solana ecosystem tokens at a time when blockchain is gaining traction in the space.
According to informed circles, the exchange intends to enable the redemption of Solana Program Library (SPL) tokens in the near future. SPL tokens are deployed on the Solana blockchain in the same way as ERC-20 tokens are deployed on the Ethereum blockchain.
The move is significant for Coinbase. For one, it contradicts their tradition of only listing Layer 1 projects and ERC-20 tokens. The Solana ecosystem tokens are the first to list native tokens deployed on chains other than Ethereum.
This move, while significant, is hardly surprising. Coinbase has been under a lot of pressure to expand its token offering for some time now. As a public company, investors have expectations and the stock market strives to meet them. She has relied primarily on price gains, which always attract many traders.
However, this in itself is not sustainable, but Coinbase’s strategy is to list new tokens that attract traders looking to bet on the next 100x coin.
Has Coinbase lost its magic?
Still, listing on Coinbase may not be as important as it used to be, especially since there are far more tokens available on the platform. According to an analyst’s investigation, listing on Coinbase could even prove detrimental.
Faisal Khan found that the tokens listed on the exchange perform worse than Bitcoin and Ethereum on average. The listed tokens have also underperformed those that Coinbase once considered listing but then decided against.
Despite all of this and a 45% drop in the share price, Goldman Sachs believes Coinbase is still the best way to bet on cryptocurrencies. In a recent report, the investment bank sees a number of new potential revenue streams and still recommends investors buy the stock.
More on the subject: Coinbase listed coins it had previously invested in without disclosing this