SAFE rallies 20% on Bithumb listing

SAFE, the native token of Safe Wallet, jumped 20% when Bithumb listed the token on its platform.

On (ON) reached $1.10 on January 10, marking a 20% rise from its monthly low of $0.924, while increasing its market cap to nearly $600 million at the time of writing.

The altcoin rally occurred in a high volume environment. Its daily trading volume jumped 429%, from $15 million early Thursday morning to more than $80 million.

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

SAFE rallied as Bithumba major crypto exchange based in South Korea, announcement this would add a KRW trading pair for the SAFE token on January 10, as well as the SONIC and AHT tokens.

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

Typically, a listing on a leading South Korean exchange such as Upbit or Bithumb leads to a strong rally in the associated token. Such a case was reported earlier in October last year when SAFE got a listing on Upbit, leading to a 72% increase in a single day.

SAFE also rebounded due to increased demand from its derivatives traders. According to According to CoinGlass, open interest for SAFE in the futures market jumped 151% over the past day, reaching $19.5 million, significantly higher than the $5.5 million recorded at the start of the ‘year.

However, it is important to note that rallies that follow stock market listings often face a reversal as investors sell their holdings to secure profits. Notably, CoinGlass data shows that over $5.96 million SAFE was sent to centralized exchanges on December 10, compared to $5.65 million withdrawn.

Additionally, SAFE’s weighted funding rate at press time was -0.6690%, meaning short sellers dominated the market, with more traders betting on its price to decline.

Such levels also increase the possibility of a short squeeze if the price reverses higher, potentially forcing short positions to close.

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