Caldera surges 64% as Coinbase support boosts altcoin

Caldera (ERA) has emerged as a standout performer in the cryptocurrency market, particularly in the wake of regulatory advancements that have injected fresh retail liquidity into altcoins. The recent addition of ERC-20 support by Coinbase has further bolstered the bullish outlook for ERA, positioning it as the best daily performer among the top 300 cryptocurrencies. This development has sparked significant interest and investment, with ERA surging 64% over the past 24 hours, outpacing its peers in a clear buy-the-news event.

However, the altcoin has also experienced a 30% decline since its peak, as the Caldera Foundation opened for claims related to its 70 million ERA airdrop. This has prompted some holders to offload their tokens for immediate gains, creating a temporary sell pressure. Despite this, the overall sentiment remains positive, with the potential for ERA to establish a more stable foundation for continued growth once the airdrop claims conclude.

Coinbase's use of the ‘Experimental Label’ for ERA indicates that the token is new or has low trading volume, making it more susceptible to price volatility. Nevertheless, the geopolitical and macroeconomic uncertainties that previously clouded the narrative have dissipated, thanks to ever-closer regulatory clarity amid “Crypto Week.” This has fueled a capital rotation into riskier assets, further supporting the bullish outlook for ERA.

Fundamentally, Caldera's network integration with over 50 rollups, powering projects like ApeChain, Kinto, Sanko, and Manta, has positioned it as a strong contender in the Ethereum layer-2 solutions market. With over $1 billion in total value locked and processing over 360 million transactions from 10 million wallets, Caldera's on-chain adoption metrics are impressive. This supportive regulatory framework emerging from “Crypto Week” could further boost Caldera's adoption and market potential.

At a $216 million market cap, Caldera has considerable upside potential. However, short-term sell pressure from the airdrop remains the main headwind for the rest of July. Analysts predict that once the airdrop claims conclude, selling pressure may ease, allowing ERA to establish a more stable foundation for continued growth. The altcoin is currently testing for a new higher low, with potential support forming around $1.35. The outcome here could define whether a broader downtrend resumes or a new leg up begins.