The native token of Safe Wallet, SAFE, experienced a significant surge of 20% after being listed on the popular cryptocurrency exchange Bithumb. This surge saw the price of SAFE rise to $1.10 on January 10, marking a substantial increase from its monthly low of $0.924. The market cap of SAFE also saw a boost, reaching nearly $600 million at the time of writing.
The rally of SAFE was accompanied by a surge in trading volume, which increased by 429% from $15 million to over $80 million. Despite this impressive rally, the price of SAFE still remains 69% below its all-time high of $3.56 in April of the previous year, indicating potential for further growth.
The listing of SAFE on Bithumb, a major South Korea-based exchange, played a significant role in driving the token’s rally. Bithumb announced the addition of a KRW trading pair for SAFE on January 10, along with SONIC and AHT tokens. This new trading pair will allow for direct trading between SAFE and the South Korean won, making the token more accessible to a wider audience, particularly in the South Korean market.
It is worth noting that listings on premier South Korean exchanges like Upbit or Bithumb often result in strong rallies for the related tokens. For example, when SAFE was listed on Upbit in October of the previous year, it saw a 72% surge in just one day.
In addition to the exchange listing, increased demand among derivatives traders also contributed to the rally of SAFE. CoinGlass reported a 151% surge in open interest for SAFE in the futures market over the past day, reaching $19.5 million compared to $5.5 million at the beginning of the year.
However, it is important to be cautious as rallies following exchange listings can often face reversals as investors sell their holdings to secure profits. Data from CoinGlass showed that a significant amount of SAFE was sent to centralized exchanges on December 10, indicating potential selling pressure.
At the time of writing, SAFE had retraced some of its gains, falling 7% from its daily high and trading at $1.01 per coin. The weighted funding rate for SAFE was -0.6690%, suggesting that short sellers were dominating the market, with more traders betting on the price of SAFE to decrease. This situation also increases the possibility of a short squeeze if the price of SAFE reverses upwards, potentially forcing short positions to close.
Overall, the listing of SAFE on Bithumb and the subsequent rally demonstrate the growing interest and potential for growth in the cryptocurrency market. Investors will be closely watching to see how SAFE performs in the coming days and whether it can sustain its recent gains.