SOL-PERP and AVAX-PERP markets will be launched on Coinbase International Exchange and Coinbase Advanced starting November 14.
Coinbase, a leading cryptocurrency exchange, revealed its plan to introduce perpetual futures contracts for two major altcoins, Solana (SOL) and Avalanche (AVAX).
The exchange will feature SOL-PERP and AVAX-PERP markets on Coinbase International Exchange and Coinbase Advanced starting November 14, pending favorable liquidity conditions. Perpetual futures, a derivative contract allowing indefinite speculation on asset price movements, offer traders advantages such as arbitrage, leveraging, and hedging opportunities.
@CoinbaseIntExch will add support for Solana and Avalanche perpetual futures contracts on Coinbase International Exchange & Coinbase Advanced. The opening of our SOL-PERP and AVAX-PERP markets will begin on or around 4pm UTC on 14 November 2023, if liquidity conditions are met. pic.twitter.com/D2QTV9k9Qe
— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) November 12, 2023
However, users should be cautious about potential risks like over-leveraging, liquidation, and market volatility. Coinbase Advanced, which launched perpetual futures trading in October, initially included contracts for Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP, with leverage options and settlement in USD Coin (USDC) stablecoin.
In September, the Bermuda Monetary Authority granted regulatory approval to Coinbase International Exchange, enabling the platform to provide perpetual futures to customers outside the United States. In its exchange notes, Coinbase noted:
“Coinbase complies with local regulations around crypto derivatives, thus perpetual futures trading on our Advanced Trading platform is only available to users in specific non-US regions”.
SOL and AVAX Price Rally
The recent announcement from Coinbase comes at a time when both Solana (SOL) and Avalanche (AVAX) have been rallying strongly during the recent altcoin market rally.
Solana (SOL) has been on an unstoppable rally and has gained nearly 50% over the last week with its price surging to $57 as of press time. Over the last month, the SOL price has surged by a staggering 165% amid strong bullish momentum and whale action.
On-chain data provider Santiment noted that Solana has recently exceeded the $55 mark for the first time since May 2022. Increased discussions on $SOL suggest that the broader audience acknowledges the asset’s detachment from other assets. While funding rates are elevated, they have not entered a ‘danger zone’ as of now.
📈 #Solana has now surpassed $54 for the first time since May, 2022. Discussion rates on $SOL have again spiked, indicating the mainstream crowd recognizes the asset’s decoupling from other assets. Funding rates are high, but not in a ‘danger zone’ yet. https://t.co/Tl9jlAsOx5 pic.twitter.com/sG97sCU9Br
— Santiment (@santimentfeed) November 10, 2023
At the same time, Avalanche’s AVAX token is also making strong moves gaining over 45% over the last week and moving closer to $20.
Breaking out of the falling wedge pattern, the current price action signals a significant moment indicating a potential trend reversal. Additionally, the notable surge in intraday trading volumes substantiates the bullish momentum, highlighting substantial underlying demand.
Photo: TradingView
As of now, AVAX is trading at $18.50, forming a bullish engulfing candlestick with a notable intraday growth of 10.28%. With increasing demand, there’s optimistic potential for the bull run to extend beyond the $20 mark. Medium-term holders might anticipate the Avalanche token price reaching the $30 threshold.
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