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SAFE, the native token of Safe Wallet, experienced a 20% surge following its listing on the South Korean exchange Bithumb. On January 10, the token reached a price of $1.10, marking a significant jump from its monthly low of $0.924 and pushing its market capitalization to nearly $600 million.
This rally occurred in a high-volume environment, with the daily trading volume increasing by 429%. The volume surged from $15 million early Thursday morning to over $80 million.
Despite this surge, SAFE remains 69% below its all-time high of $3.56, which was reached in April last year, indicating substantial room for potential growth.
The surge was largely driven by Bithumb’s announcement that it would list a KRW trading pair for SAFE, as well as for SONIC and AHT tokens, on January 10. The introduction of the SAFE/KRW pair allows direct trading between the SAFE token and the South Korean won, which increases its accessibility, especially to South Korean traders.
Listings on prominent South Korean exchanges like Upbit and Bithumb are often followed by substantial rallies for the listed tokens. A notable example was seen in October last year when SAFE was listed on Upbit, leading to a 72% surge in just one day.
SAFE’s price increase also coincided with a surge in demand from derivatives traders. Open interest in SAFE futures contracts surged by 151% in the past day, reaching $19.5 million, up from $5.5 million at the start of the year.
However, market conditions suggest the possibility of a price correction. Data from CoinGlass shows that more SAFE tokens were sent to centralized exchanges in December than were withdrawn, indicating that investors may be taking profits. Additionally, the weighted funding rate for SAFE was -0.6690% at press time, indicating a dominance of short sellers in the market. This creates the potential for a short squeeze if the token’s price reverses upward, forcing short positions to close.
At the time of writing, SAFE had retraced some of its gains, falling 7% from its daily high, and was trading at $1.01 per coin.
