One of the most ambitious projects on the crypto market, Safemoon uses a solid community-oriented approach and innovative coin management algorithms to solve the common problems of all the crypto industry. While it has definitely attracted some attention from the crypto crowd, it does not seem to go anywhere near the moon yet. In this article, we’re going to explain how Safemoon works, how it wants to change the market, and what experts say about its prospects in terms of market value.
How Safemoon works
Launched in March 2021, Safemoon is a cryptocurrency based on the Binance Smart Chain (BSC). It claims to have the means to solve several common problems of other cryptocurrencies: high value of mining and liquidity deficit. Safemoon employs smart contracts to build liquidity and manage coins in an automated way. The team seems to believe this mechanism can help fight volatility that many DeFi projects suffer from and make the Safemoon coin more valuable in the long term.
However, despite all the measures taken to make Safemoon an attractive investment, it doesn’t seem to hold its value well. In April 2021, shortly after the launch, the coin managed to reach its all-time high value of $0.000014, but it has since lost about 99% of that value. Despite the fact that Safemoon has managed to gather some community around the coin, many early investors keep asking themselves: will Safemoon reach $1? Let’s check out what can affect the price first.
What affects the price
Just like with any other cryptocurrency, the price of Safemoon is defined by many factors. Demand is one of them: the more people want to buy a coin, the higher its price goes. But there aren’t too many people right now who want to buy Safemoon: some even consider it a memecoin, a speculative coin with no other applications. Other aspects to consider are the overall coin supply, its distribution rules, and liquidity. While Safemoon has its ways to address these, they don’t seem to be effective enough.
Some experts are more optimistic, but almost nobody on the market expects Safemoon to reach the $1 bar any time soon. According to the experts of PricePredictions, SFM can be worth $0.00000011 by 2030. Changelly expects SFM to be worth about $0.00000012 on average in 2030. But there are more bold predictions, too: Digital Coin Price thinks it can reach about $0.008 by 2025.