With Bitcoin and Ethereum pulling off a minor relief rally, most other coins from the crypto market collectively climbed up in the charts on Thursday. The period, however, was not good enough to last. On Friday, bears were back to work and were seen controlling the market affairs. At press time, the global crypto market cap was down to $896.7 billion, down by around 5% in the last 24 hours.
While most cryptos registered single-digit losses, one token ended up shedding almost all of its value. SafeMoon was down by 95.3% at press time on Friday.
SafeMoon’s one foot up, the other foot down?
Per data from CoinMarketCap, SafeMoon was trading at $0.0000000812 a day back. Post the depreciation, the token’s price was on its knees at $0.000000003827, with an additional zero added.
So, what exactly triggered the dip? Per blockchain security and data analytics firm PeckShield, the v1 to v2 migration caused the dump in price. Outlining the same, its tweet noted,
“… safemoonV1 drops significantly due to migration.“
Back in mid-December, SafeMoon upgraded from V1 to V2 and merged its tokens to a 1000:1 ratio. Consequentially, SafeMoon’s floating supply was lowered, but users’ aggregate balances were not affected. The update aimed to improve the overall security and accessibility, and aid in cushioning the token’s price.
As V1’s price fell down the cliff, V2’s value started climbing up around the same time. At press time, SFM was up by 24% on the daily window and was seen exchanging hands at $0.000575.
Alongside, its trade volume was also up by 23% in the same timeframe, indicating that alongside migration, buy-side transactions have been surging in the marketplace. This brings to light the brewing interest of market participants with respect to the SafeMoon v2 token.
Thus, keeping in mind the aforesaid events, the panic associated with the 95% dip shouldn’t worry investors, for V2’s price is currently heading in the right direction.
