Safe Wallet’s Native Token, SAFE, Surges 20% Following Bithumb Listing
Safe (SAFE), the native token of Safe Wallet, experienced a significant surge of 20% as Bithumb, a major South Korea-based crypto exchange, listed the token on its platform. The token reached a price of $1.10 on Jan. 10, marking a notable increase from its monthly low of $0.924 and bringing its market cap close to $600 million.
Trading Volume and Growth Potential
During the rally, Safe witnessed a substantial increase in trading volume, with daily trading volume surging by 429% from $15 million to over $80 million. Despite the recent surge, the token still holds significant growth potential, as its current price remains 69% below its all-time high of $3.56 in April of the previous year.
Impact of Bithumb Listing
The listing of SAFE on Bithumb, along with the announcement of a KRW trading pair for the token, played a crucial role in driving the price surge. The addition of a SAFE/KRW trading pair facilitates direct trading between the token and the South Korean won, making it more accessible to a broader audience, particularly in the South Korean market.
Historically, listings on premier South Korean exchanges like Bithumb or Upbit have led to significant rallies in related tokens. For instance, when SAFE was listed on Upbit in October last year, it experienced a 72% surge in just one day.
Derivatives Trading and Market Dynamics
Increased demand among derivatives traders also contributed to SAFE’s rally, with open interest in the futures market surging by 151% to $19.5 million. However, it is essential to consider the potential impact of profit-taking by investors following exchange listings, as well as market dynamics such as the weighted funding rate and short interest.
At the time of writing, the weighted funding rate for SAFE was -0.6690%, indicating a dominance of short sellers in the market. This situation raises the possibility of a short squeeze if the price reverses upwards, potentially causing short positions to close.
Current Status and Outlook
Despite the initial surge, SAFE has retraced some of its gains, falling by 7% from its daily high and trading at $1.01 per coin. Investors will be closely monitoring market dynamics and trading activity to assess the token’s future performance in light of recent developments.