Coinbase Boosts Shiba Inu: Trading Volume Surges Ahead of SHIB Futures Launch

• Coinbase International will launch perpetual futures for Shiba Inu (SHIB) and other meme coins on May 30, 2024.

• Coinbase’s decision to introduce these instruments is a response to the growing interest in meme-based cryptocurrencies.

Coinbase International will launch perpetual futures for Shiba Inu (SHIB) and several other meme coins on May 30, 2024. This move aims to enhance trading flexibility and strategies for institutional clients outside the U.S.

@CoinbaseIntExch will add support for Bonk, FLOKI, and Shiba Inu perpetual futures on Coinbase International Exchange and Coinbase Advanced. The opening of 1000BONK-PERP, 1000FLOKI-PERP, and 1000SHIB-PERP markets will begin on or after 9:30am UTC 30 MAY 2024. $BONK $FLOKI $SHIB pic.twitter.com/TNNAFEjtHH

— Coinbase International Exchange (@CoinbaseIntExch) May 23, 2024

The upcoming launch of perpetual futures includes popular meme coins like Dogecoin (DOGE), Pepe (PEPE), and the recently declining Dogwifhat (WIF). In addition, more established cryptocurrencies such as Cardano (ADA), Avalanche (AVAX), and Bitcoin Cash (BCH) will also be available for trading. 

Coinbase’s decision to expand its offerings follows the establishment of its offshore derivatives exchange in May 2023. The exchange received regulatory approval in September 2023 to offer users outside the United States futures trading. Perpetual futures will be accessible via Coinbase International, which targets institutional clients, and Coinbase Advanced, which is designed for professional traders.

Perpetual Futures Allow Speculative Trading Without Ownership

The new perpetual futures contracts, 1000BONK-PERP, 1000FLOKI-PERP, and 1000SHIB-PERP, are designed to allow traders to speculate on these cryptocurrencies’ price movements without owning the underlying assets. This feature is particularly advantageous for institutional investors seeking more sophisticated trading strategies. Perpetual futures are derivatives that do not have an expiry date, enabling continuous trading and offering greater flexibility in managing positions.

Coinbase’s decision to introduce these instruments is a response to the growing interest in meme-based cryptocurrencies and their potential for high volatility and trading volumes. The addition of these futures contracts is expected to attract more institutional clients looking for advanced trading tools.

Following the announcement, Shiba Inu’s trading volume increased 51.95% over the past 24 hours. It is worth noting that, currently, SHIB is trading at $0.00002493, with a 5 % increase in the last 24 hours. 

Other meme coins have also suffered, with Dogwifhat (WIF) experiencing a 7% decline. Bonk (BONK) is the sole meme cryptocurrency showing positive movement, with a 3% increase. This market volatility is part of a more extensive cryptocurrency slump, with Bitcoin on the verge of dropping below the $67,000 mark. Despite these conditions, Coinbase is confident that future product demand remains strong, particularly among sophisticated traders looking for new opportunities to hedge and speculate.

Coinbase Bets on Robust Demand for Derivatives Products

Coinbase’s initiative to introduce perpetual futures for meme coins aligns with its broader strategy to expand its derivatives market presence. Earlier this month, the exchange announced plans to offer futures contracts for gold and oil, responding to growing interest from advanced traders. These moves signify Coinbase’s commitment to diversifying its product offerings and catering to a global clientele.

This comes as Shytoshi Kusama has sparked curiosity about the possibility of a SHIB ETF, as previously reported by Crypto News Flash. Kusama’s cryptic tweet, accompanied by the hashtag #staytuned, suggests that the SHIB community may face a significant decision regarding an ETF. Shytoshi Kusama’s mention of a potential SHIB ETF has capitalized on the current enthusiasm.