SAFE rallies 20% on Bithumb listing

Safe Wallet’s native token, SAFE, rose 20% after Bithumb listed the token on its platform.

Safe (SAFE) rose to $1.10 on January 10, marking a 20% gain from its monthly low of $0.924, bringing its market cap to nearly $600 million at the time of writing.

The altcoin’s rally took place in a high-volume environment. Daily trading volume jumped 429%, from $15 million to more than $80 million on Thursday morning.

Despite the recent rally, the altcoin still carries significant growth potential, considering SAFE’s price remains 69% below its all-time high of $3.56 in April last year.

SAFE rebounded when Bithumb, a major crypto exchange based in South Korea, announced on January 10 that it would add a KRW trading pair for its SAFE token along with SONIC and AHT tokens.

The SAFE/KRW trading pair will allow direct trading between the SAFE token and the South Korean won, making it more accessible to a wider audience, especially in the South Korean market.

Typically, listing on a leading South Korean exchange such as Upbit or Bithumb results in a strong rise in the relevant token. One such example was reported in early October last year when SAFE secured a listing on Upbit, leading to a 72% surge in just one day.

SAFE also rebounded as a result of increased demand among derivatives traders. According to CoinGlass, open interest in SAFE on the futures market increased by 151% in the past day, reaching $19.5 million. This figure is well above the $5.5 million recorded at the beginning of the year.

However, it is important to note that rallies that follow stock market listings often face reversals as investors sell their holdings to make a profit. Specifically, data from CoinGlass shows that over $5.96 million in SAFE was sent to central exchanges on December 10, compared to $5.65 million withdrawn.

Additionally, SAFE’s weighted funding rate was -0.6690% at press time; This meant that short sellers dominated the market and more traders were betting that the price would fall.

These levels also increase the likelihood of a short squeeze if the price moves upwards, potentially forcing short positions to be closed.

At press time, SAFE has erased most of its gains, falling 7% from its daily high and trading at $1.01 per coin.