Just-In: Drift Price Skyrockets 25% On Coinbase Listing

Decentralized Exchange (DEX) platform focused on perpetual trading Drift Protocol (DRIFT) has jumped more than 25% in the past 24 hours on Coinbase listing. This current uptick has sent the price of the altcoin to $0.3553 in an unexpected decoupling from Bitcoin (BTC).

Why is DRIFT Soaring Today?

The massive uptick in the price of DRIFT hinges on the news that Coinbase Exchange is on track to list the token for trading. The dominant American trading platform said it will add support for the token on the Solana Network (SPL Token). The exchange said support for DRIFT transfers to its platforms is open and accessible to traders in its supported jurisdictions.

While it unveiled the listing plans, the exchange said trading will commence later if liquidity conditions are optimal. The trading platform noted that the DRIFT and USD pair will open in phases if conditions are right. The exchange published the DRIFT contract address to shield its community from scams and other exploitative models.

Token listings by trading platforms is a major validation for the project. When the listing comes from Coinbase, Binance or any of the top trading platforms, it is generally considered a major bullish event for the project. This accounts for the boost in the price of DRIFT.

However, Coinbase said it is listing Drift Protocol with the Experimental Label applicable. The exchange generally does this to protect its users or issuer the appropriate disclaimers that the project is new. Responding to the news, Drift Protocol has pushed its trading volume north of $41 million.

Why Did Coinbase List Drift Protocol?

The listing of Drift Protocol might be considered a very cautious one by Coinbase. The platform is hosted on the highly scalable Solana network with its fast growing Decentralized Finance (DeFi) ecosystem.

Drift Protocol seeks to bring a highly needed solution to the Solana world, enabling trading on-chain with up to 20x leverage. The platform also offers cross-margin and multi-collateral to empower its users. While there are many exchanges on Solana, few offers as much promise as Drift Protocol, hence bagging the Coinbase support.

With the unclear regulatory climate in the United States, the listing of Drift Protocol comes off as a major bet. With the utility it offers, Coinbase is notably acknowledging that DRIFT do not fall under the securities classification of the US SEC.

Read More: US DOJ Charges Two Chinese Citizens in $73 Million Crypto Scam