SafeMoon crypto caught investors’ eye looking for an alternative to Bitcoin. It's one of the newest and fastest-growing cryptocurrencies in 2021, which launched in March this year. However, it's still trading at a fraction of a cent. What is Safemoon's price prediction and will it reach a penny?
Safemoon is a DeFi (decentralized finance) project based on the Binance blockchain. SafeMoon seeks to encourage long-term investment rather than day trading bets. Therefore, a sale of SafeMoon coin attracts a 10 percent transaction fee. Half of the fee is distributed to the holding community while the other half is reinvested in the project.
How many Safemoon coins are there?
The original supply of Safemoon tokens was one quadrillion but the developers keep on burning tokens, which has left the circulating supply of tokens at 585 trillion. The idea behind burning tokens is that it will take out supply, which when combined with increasing demand would lead to a higher price.
Why Safemoon is rising
Safemoon reached an all-time high of $0.00001399 in April, only to set on a downtrend since. However, even after the decline, the token has returned more than 5,000 percent since its launch. There are multiple reasons for this rise.
First, the token’s value is very low. Similar to investors’ lure for penny stocks, people are finding it easy to invest in the crypto. Second, Bitcoin’s stupendous run has inspired investors to look for the next best crypto, which has the potential for compounding investor returns. Safemoon pays out dividend-like distributions. The crypto’s transaction fee of 10 percent on its sale is aimed at long-term investment in the token rather than trading. These factors along with regular token burns have enticed investors’ towards its upside potential.
Safemoon price prediction
WalletInvestor has a bullish estimate for Safemoon crypto and sees its price rising to $0.000021 in one year and $0.000090 in five years. This implies a growth of nearly 600 percent and 3,000 percent, respectively.
DigitalCoinPrice expects the token to reach a value of $0.00000501 by the end of 2021 and $0.00001020 by the end of 2025, which implies growth rates of 72 percent and 251 percent, respectively.
Will Safemoon reach a penny?
Currently, many social media users are trying to influence the price of Safemoon crypto. The hashtag #SafeMoonSqueeze is trending on Twitter. The users are hoping to induce a GameStop or AMC-type squeeze in Safemoon, which would lead its price higher. In April 2021, Dogecoin fans had also done a similar push to propel its value to $1. However, the push didn't work and the value of the DOGE token declined.
Similarly, the hashtag hasn't done anything positive for Safemoon crypto until now. Trending in line with the broader crypto market, the price of Safemoon is going lower. China’s intensifying crackdown on crypto is probably hurting the market sentiment.
For Safemoon crypto to reach a penny, it will have to rise by 34,264 percent from the current price. In the short to medium term, that seems highly unlikely. Going by even the most bullish price estimates, Safemoon reaching a penny in even five years doesn’t seem like a very likely bet. However, going by Safemoon’s deflationary nature and its promise of price stability, it might continue its upward run after the recent pullback.
Best way to buy Safemoon
While you can access SafeMoon on major crypto exchanges like Binance and Huobi or through brokers Robinhood and eToro, the best and the most popular way for investors to access the token is through DEX PancakeSwap. You can’t buy SafeMoon with fiat money. Therefore, you will need to use an intermediary cryptocurrency like Binance Coin.
Safemoon versus Dogecoin
SafeMoon is looking to be a Dogecoin competitor. Dogecoin was created in 2013 as a joke currency to complete with Bitcoin. SafeMoon, on the other hand, claims itself to a DeFi token, although its use cases aren't very clear. There are 130 billion DOGE coins in circulation and the supply is unlimited. In contrast, there are 585 billion SafeMoon coins circulating and the supply is being reduced through coin burns.
SafeMoon plans to grow in the next few months by building its own app, a cryptocurrency wallet, and games. Since Dogecoin started as a joke, there haven't been any developments. However, after its blistering run in 2021, developers plan to update the software. Its utility will depend on how and when that upgrade occurs.
However, both Safemoon and Dogecoin remain highly speculative and without much merit right now. There are better altcoins out there that are trying to solve real-world problems and are a better bet despite their high volatility. These altcoins include Cardano, Stellar Lumen (XLM), Enjin Coin (ENJ), Theta Fuel (TFUEL), and the Graph (GRT).