Coinbase has quietly updated the price precision for two trading pairs on its exchange: STRK-USD and MPLX-USD.
Price precision, in plain English, means how many decimal places an exchange uses to quote a token’s price. When a token trades at a few cents, the difference between two and four decimal places can be the difference between a tight market and a sloppy one.
For tokens trading at relatively low prices, limited decimal precision means the minimum price increment between orders, known as the tick size, is disproportionately large. That creates wider spreads, which is the gap between what buyers are willing to pay and what sellers are asking. Wider spreads mean worse execution for traders and less efficient price discovery overall.
STRK, the native token of the Starknet ecosystem, has been hovering around $0.03. At that price level, even a single extra decimal place of precision can meaningfully reduce the percentage spread between bids and asks.
STRK is the governance and fee token for Starknet, one of the more technically ambitious Layer 2 scaling solutions for Ethereum. Starknet uses zero-knowledge rollup technology, which bundles transactions off-chain and then posts cryptographic proofs back to Ethereum’s mainnet.
