Cryptocurrencies are known for their volatility, making them a high risk/high reward type of investment. But, of course, there are some that are quite more volatile than the others. When it comes to extreme volatility, SafeMoon is on top of the list. This token has seen extreme price movements throughout the months, with price changes that were never seen before in such a short time. During its first month in the market, SafeMoon mooned… literally.
Its sudden price increase was considered a market bubble by many, and so it was. Yet, it took quite some time for that bubble to burst. What kept SafeMoon on an uptrend was most likely the fear of missing out (FOMO) that was created after some great marketing done by the SafeMoon team.
SafeMoon Price Analysis
According to CoinMarketCap, SafeMoon joined the market on the 10th of March 2021 with a price of $0.000000000545. Because of its enormous supply of 1 Quadrillion tokens, the price of SafeMoon had numerous zeros behind the comma, something that was considered by many cryptocurrency enthusiasts as a way to trick crypto beginners – but they were wrong.
Only 2 days after its launch, SafeMoon’s price climbed up one zero, giving it a trading value of $0.0000000024. This price increase continued throughout March. By the end of the month, SafeMoon has reached a price of $0.00000068. This meant that SafeMoon had climbed up 3 zeros on its price. Then, on the 20th of April, SafeMoon reached its peak, setting the current all-time high by hitting the price of $0.000013.
In only 1 month, SafeMoon’s price ‘ate up’ five zeros, experiencing unimaginable price growth during that time. The rapid growth of that scale was never seen before in the cryptocurrency market. To put this into perspective, a $100 investment in SafeMoon in early March turned into $2 million by April. That being said, SafeMoon created hundreds of millionaires in only a month.
However, after the hype died down, whale investors took their profits, which resulted in the price of SafeMoon plummeting. Even though its price is still more than 200000% higher than it was when the token first joined the market, the SafeMoon dip was quite a big one.
Why These Price Movements?
There are many factors that play a role when it comes to identifying the reason for some specific price movements for a particular cryptocurrency. First off, its low market capitalization indicates that there is huge growth potential. The lower the market cap, the more the impact will investment have on its price, increasing the chances of you profiting. SafeMoon had a very low market cap when it first joined the industry, making it easier for its price to skyrocket. More than $6 billion had flown through the SafeMoon market the following months after its launch. This was around the time when SafeMoon had all the attention, with more than ¾ social media posts on the explore page being about this token.
So, there are two main factors at play when we talk about the price movements of SafeMoon during its last bull run. The low market capitalization made it possible for people to invest in this token, and their investments had quite a positive impact on the price of SafeMoon. Last but not least, fear of missing out gave the last push to this token, which reached its peak in April.
At the time of writing, SafeMoon is trading at a price of $0.0000021 per token. It has a market capitalization of $1.3 billion and a trading volume of $14.5 million.
Also Read: SafeMoon Price Prediction 2021 and Beyond – Is SAFEMOON a Good Investment?
Takeaways
- SafeMoon experienced a huge price increase during its first month in the market.
- Entering the market with a price of $0.000000000545 and reaching $0.000013 in just a month meant a 2300000% price increase for the token.
- That being said, numerous millionaires were made in just a month.
- SafeMoon entered the top 50 cryptocurrencies regarding market capitalization by reaching a market cap of $6 billion in April.
- Since it is still under development, SafeMoon is quite more volatile than most cryptocurrencies.