The altcoin DeepBook (DEEP) has drawn market attention due to a sharp price increase in a short period, backed by well-known crypto exchanges.
Price and Dynamics of DeepBook
Earlier today, April 22, DEEP was trading at around $0.09, but within an hour, it reached a seven-week high of $0.16. However, this peak was short-lived, and the current price settled at $0.11, reflecting a 22% rise for the day.
Impact of Binance and Upbit on Price
The rally was likely fueled by support from Binance, which launched the DEEP/USDT perpetual contract with leverage up to 50x. Binance clarified that futures and spot token listings are not correlated, meaning that a token listed on Binance Futures does not necessarily guarantee its listing on Binance Spot. Upbit also contributed to the price increase by adding the DEEP/KRW trading pair to its platform.
Past Examples of Similar Cases
Support from major exchanges generally increases liquidity, enhances visibility and reputation of cryptocurrencies. For instance, earlier this month, Binance placed the meme coin Cat in a Dogs World (MEW) in its Binance Alpha, which led to a 15% price surge. Additionally, in February, Upbit introduced trading pairs TRUMP/KRW and TRUMP/BTC, resulting in a 10% price increase for the meme coin associated with Donald Trump.
DeepBook’s rise illustrates how backing from major exchanges can significantly influence cryptocurrency price dynamics. This highlights the importance of liquidity and availability of tokens on international trading platforms.
