Place/Date: - August 17th, 2022 at 11:37 am UTC · 3 min read
During the week of May 9, the cryptocurrency market experienced big price swings. Many tokens saw some degree of decline, and some even fell below the 100% decline rate, such as TerraLUNA. Stable currencies in cryptocurrencies such as Bitcoin and Ether have also fallen below their 2022 lows and the 2021 dark horse token SafeMoon.
At the time of writing, the SafeMoon token was trading at $0.00046427 on the international Gate.io crypto exchange, having fallen by 9% in the last seven days, after a price of $0.0004746 on the Gate.io international digital currency exchange when the cryptocurrency market started moving on May 9. In the last 7 days, the price has dropped by 9.3%. In the last 24 hours, the price has fallen by 8.7% and the trading volume is $1,640,125.
In terms of the broader cryptocurrency market, such a drop in the index may not be very severe. However, the price of SafeMoon has indeed fallen a lot compared to its peak in 2021, perhaps by more than 400%. Nevertheless, there have been many events in the recent cryptocurrency market that have affected the price of various tokens, including SafeMoon.
Until a week ago, Terra was the hottest project in the crypto space: its governance token LUNA ranked in the top 10 in terms of market cap, and its dollar-pegged algorithmic stable coin UST ranked fourth among all stable coins. Yet who would have thought that both would crash almost simultaneously? Many projects had already collapsed before that, but none of them were as dramatic as Terra’s mountainous fall. We believe that shortly, the crypto industry will come to a conclusion about this disaster and rationally analyze why so many in the industry trusted Terra’s high-risk structure. This seems to be a test for other cryptocurrency tokens such as SafeMoon, is it possible for the price trend to go up afterward?
It was previously reported that the cryptocurrency market had lost over $1 trillion in market capitalization just before Terra’s collapse. You know that the total market cap of Bitcoin in 2020 was only $200 billion. As you may have noticed, most of the crashes were driven by macroeconomic forces, not just cryptocurrencies, but their related financial sectors followed and were deeply affected, such as the tech industry. SafeMoon’s market cap has now shrunk to $267,355,060.
US Treasury Secretary Yellen told the US Congress this week that cryptocurrencies are not a “systemic risk” to the broader US economy, which is a big deal because “systemic” is a technical term, and if there is a “systemic risk”, that means that the crypto industry will be subject to a series of punitive new regulations. This contention will be a new difficulty for the small token SafeMoon in terms of price volatility.
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