With The Price Down 32.5% in 7 Days, Will SafeMoon Ever Return to Its Peak?

The cryptocurrency markets almost showed a downward trend at the beginning of May, with most cryptocurrencies starting to fall in varying degrees. Even Bitcoin or Ethereum, which are known as stable coins for cryptocurrencies, fell by 8.22% and 7.16% respectively in the last 7 days. And, the Federal Reserve raised 50 basis points to combat the effects of inflation on May 4th. Not only that, but the UK inflation rate soared to 7% and is still rising. The Bank of England raised interest rates on May 5, the fourth time since last December and the fastest increase in borrowing costs in 25 years.

Even though countries are starting to make some responses to the current financial markets, at the close of trading on May 5, the three major U.S. stock indices were down sharply, with the Nasdaq down 4.99%, the S&P 500 down 3.55%, and the Dow down 3.11%. Such a situation was not only seen in the financial markets but also in the cryptocurrency market.

As seen on the international cryptocurrency exchange www.gate.io, SafeMoon’s price was $0.0004947 at the time of writing and had dropped 32.5% in 7 days. In the last 24 hours, the price has also fallen by 2.6%, with a volume of $2,504,077. This is kind of a big drop in cryptocurrencies.

What Is SafeMoon’s Peak Moment?

SafeMoon is a BE20 token released in March 2021 on the Binance Cryptocurrency Smart chain. It was also one of the tokens with the largest price increase in the first half of 2021. Even now it still feels exaggerated to talk about it, as SafeMoon’s price rose by 6,000% in just 2 months. It also increased the attention of 2.5 million investors.

When it was first released, SafeMoon seemed to take the same cryptocurrency approach that traditional financial investors use to value stocks, which is to follow a buy-and-hold philosophy where those who hold the longest will get the biggest returns. SafeMoon uses three simple features in each transaction to combat impermanent losses and create better protocols to amplify its effectiveness. These are static rewards (reflection), manual token destruction, and automatic liquidity pooling.

However, the goods did not explode consistently. After June, the price of SafeMoon started to drop, and some investors even started to think that someone was shorting the token to make a profit. In December 2021, the SafeMoon team started to upgrade V2, changing the previous 10% transaction fee to 2%, and derived many peripheral software products or related games.

Even so, investors’ attention to SafeMoon has not increased much. And in April 2022 SafeMoon also broke out a class action lawsuit and the departure of its global product director, which also had an impact on SafeMoon price.

Nevertheless, perhaps it is also true that, as with traditional financial investments, low prices may be met with high rallies. Will SafeMoon’s current decline usher in the next sudden rise? How long before it reaches the Moon? Either way, investors need to know that cryptocurrencies are high-risk investments, and caution is needed before starting.