Most of the crypto market is surging right now, but this meme coin is falling fast—right out of the top 100, in fact. Which means that SafeMoon is no longer one of the top 100 coins by market cap on the list. What Happened to SafeMoon?
SafeMoon is only sinking further
One of the spring's biggest cryptocurrency memes was SafeMoon, a coin based on the Binance Smart Chain that appeared out of nowhere and shot up to a market cap of over $6 billion in May 2021. In the weeks that followed, SafeMoon's price declined along with the overall market. But while other coins are now rebounding, SafeMoon is only sinking further.
If the downward spiral continues, then SafeMoon certainly wouldn't be the first coin to quickly rise to prominence and then fade from relevance, as we have seen a whole host of Ethereum and Bitcoin knockoffs attempt to capture market magic over the years. Where SafeMoon varied from some of the past pump-and-dump tokens is in the way it incentivizes investors to hold on to the token long-term.
Holders seem to be selling the coin
In fact, SafeMoon users don't need to actively stake holdings inside the network; they can simply hold the token and receive passive income. Although SafeMoon is a cryptocurrency that is meant to be held, its holders seem to be selling as the price is falling and moving against the rest of the market's momentum. SafeMoon's daily trading volume decreased dramatically.
The SafeMoon Subreddit
Based on publicly available blockchain data, the SafeMoon subreddit is filled with postings about whales dumping their holdings, and a wave of panic selling may be exacerbating the current price decline. Nevertheless, despite all of that, Reddit's overall sentiment is mainly positive. Even while the value of those tokens is decreasing, everyone else still receives a little portion of the proceeds from big sale transactions.
The SafeMoon Twitter account, which has close to a million followers, tweeted, "SHOUTOUT TO ALL DIAMOND HANDS," using a well-known crypto meme phrase to indicate holding firmness and avoiding panic selling during volatility.
We'll have to wait and see if the meme coin can regain some of the hype it had in the spring and if the majority of the estimated 2.5 million unique wallet owners who have SafeMoon continue to hang onto their "diamond hands" despite recent price volatility.
