Safemoon (SAFEMOON) is a meme coin that rode the Dogecoin wave with a high degree of success. The project launched in March this year trading at $0.0000000007, and a month later, it had shed 5 zeros to trade at $0.00001.
While it has been on a downtrend since then, Safemoon has been gaining upside momentum over the last few weeks. It’s moving in tandem with Bitcoin’s current price action.
Considering how altcoins tend to rally more in Bitcoin bull markets, there is good reason to believe that Safemoon could moon again soon.
Why Safemoon Could Be The Next Big Thing?
1. Meme coins are hot again
Meme coins were hot in the last Bull Run, and cryptos like Dogecoin and Shiba Inu led the way in parabolic gains. The momentum spilled over into other meme coins and Safemoon was one of those that reaped big.
Things seem to be looking up for meme coins again, which means if the market hits new highs soon, meme coins could moon again.
One of the key indicators that meme coins are gaining traction is the pressure by investors for Shiba Inu to be listed on Robinhood.
It is more of a déjà vu of Jan/Feb this year when meme coins went parabolic after the Dogecoin and Robinhood fiasco.
The rising excitement around meme coins is coming at a time when Bitcoin seems to be gaining upside momentum. It recently made new highs at $67k, and while it corrected shortly after, the upside momentum is back.
Investors chasing big gains at low investment will likely move more into meme coins, and Safemoon is among the top ones. Most investors who know about Dogecoin and Shiba Inu also happen to know about Safemoon.
In essence, as meme coin looks all but set to rally again, Safemoon could test new highs in the short to medium term.
2. It is affordable to most small-time investors
The crypto market has come a long way over the last decade, especially in terms of acceptance, and regulations. While there is a lot of unpredictability in the market, one thing has been consistent - the large-cap cryptos have only been getting more expensive over time.
Back in the early to mid-2010s, $100 could have got you a Bitcoin or two. Similarly, as recently as 2019, $100 could have bought one Ethereum. This is no longer the case.
Today, $100 cannot buy Bitcoin (BTC) because transaction fees would eat up almost the whole investment capital. It would even be worse if you buy and try to send to a different exchange or wallet.
Similarly, for $100, an investment in Ethereum (ETH) does not make sense. Almost $35 of that amount would go into paying fees. If you try transferring that Ethereum to a different wallet or exchange, another $33 to $35 of that amount would go into fees, further giving weight to the impracticality of such an investment.
This means going into the future, investors with little capital will turn more to small altcoins. Meme coins are likely to take the bulk of such investments because they have been shown to give exponential returns on investment in the past.
Safemoon is one of the meme coins best placed to benefit from the changing market dynamics going into the future. It is affordable to all small investors, and with just $100, one can buy millions of Safemoon and speculate.
This coupled with the fact that it is one of the most recognized meme coins out there makes it very attractive to a lot of people. The result is that its price could go up consistently over time, and give investors insane ROIs.
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3. Its business model favours token stability and growth
Most small tokens tend to go down significantly after the initial pump. A good portion of them never recovers after that dump.
Safemoon is different, and that’s why it continues to grow despite the high volatility in the crypto market.
This project operates in such a way that, it discourages sellers. When you buy Safemoon, you are expected to hold, and help grow liquidity in the ecosystem. To discourage short-term dumping, the project has a 10% fine for every sale.
By discouraging sellers, this project continues to grow liquidity relative to the other meme coins. This has had the impact of stabilizing the price.
As more people buy into this project for the reasons discussed above, then its value will rise.
4. Safemoon is deflationary
In crypto, tokenomics are as important as the use case itself. This is evident in the price action of most major cryptos since they launched.
For instance, Bitcoin is where it is because of its coin supply more than anything else. Since it has a capped supply of only 21 million coins, and the supply of new coins entering circulation is cut in half every 4 years, demand pressure has kept the price on an upward trajectory.
Binance coin is another example of how tokenomics affect crypto. The project launched in 2017 while trading at less than a dollar. Today it is trading at over $500 and is one of the largest cryptocurrencies by market cap. This is all thanks to its quarterly coin burns.
Safemoon is pretty much in line with the token dynamics of these crypto success stories. That’s because a portion of Safemoon is burned with every transaction.
Since the demand for Safemoon and cryptocurrencies, in general, is only set to go up over time, the law of demand and supply in economics dictates that its price will increase over time.
5. Safemoon has a lot in the development pipeline
You can tell the prospects of a project by the quality of things in its roadmap. In the case of Safemoon, there is a lot of cool stuff coming up going into the future.
For instance, the project has an upgraded version of its core protocol in the pipeline, a hardware wallet, and even exchange.
So far, the project has achieved a lot in its roadmap. As such, all its future plans can be taken seriously. For instance, Safemoon already has a functional wallet, something that older projects do not have.
All the above factors make Safemoon a top crypto to keep an eye on going into the future.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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