Safemoon price has been left behind in the past cryptocurrency resurgence as investors worry about its future. The SFM token is trading at 0.0011 USDT, where it has been in the past few days. The price is about 43% below its highest point this year, while its total market value is $631 million. It is a top 150 cryptocurrency.
Safemoon is a blockchain project that seeks to change the decentralized finance (DeFi) industry. It was built using the Binance Smart Chain (BSc) technology that is now known as BNB Chain. Its differentiating aspect is how new SFM tokens are created. Instead of the expensive and energy inefficient proof-of-work technology, it uses its users to participate in its creation. As a result, these users earn a return whenever the token is used.
Another way that Safemoon is different from other blockchains is in terms of liquidity. Historically, well-known DeFi projects like Uniswap use liquidity that their users generate. They then need to pay them a yield. Safemoon uses a smart contract to capture liquidity to be used in DEXes and held in custody independently. Its smart contract also has the capability to burn tokens to reduce those in circulation.
The Safemoon price has struggled in the past few months because its platform has struggled to find a critical mass of people. The DeFi industry has also become crowded, with platforms like Curve, Anchor Protocol, and Uniswap having a substantial market share.
The SFM price has been making a slow upward trend in the past few days. It has risen by about 40% from its YTD low. The coin is also oscillating along the 25-day and 50-day moving averages while the MACD has moved slightly below the neutral line. It has remained between the Andrews pitchfork indicator’s upper and second resistance levels.
Therefore, there is a likelihood that the Safemoon price will resume the downward trend since this recovery seems unconvincing. If this happens, the next key support level to watch will be at 0.00098 USDT. You can read our long-term SFM forecast here.
This post was last modified on %s = human-readable time difference 09:21