What Influences SFM Price?
As with any cryptocurrency, SafeMoon's price is influenced by a wide range of factors. These include SafeMoon's market cap, its supply, demand and other technical factors. Let’s look at some of those factors in more detail.
Demand for the Token
The price of SFM is based on its supply and demand. If there is an increased demand for SFM, then the price will be higher. The more people want to buy it, then it will be worth more money. SFM’s supply and demand also determine its value on a given day. If there are not many people buying it or selling it at that moment in time, then its price will decrease until demand goes back up. The token price may also be impacted by the degree of aggressive marketing and promotion that the company behind the token carries out.
Token Issuance
The number of tokens that the company behind the token issues will have a bearing on the token price. If the company issues more tokens, the price of each token will decrease. Conversely, a limited number of tokens will mean that each token will be more expensive.
Token Distribution
The wider the distribution of tokens, the less each token will cost. Conversely, a token that is held by only a few investors will be worth a lot more than a token that several investors hold.
Liquidity of the Token
The more people trading in the token, the lower its price will be. If the token is traded only among a few individuals, its price will be higher.
Market Capitalization
The market capitalization of a cryptocurrency is the total value of all coins in circulation. The greater a cryptocurrency's market cap, the more dominant it is considered in the market. Due to this, market cap is often considered the most crucial metric for ranking cryptocurrencies. The market cap of a coin is calculated by multiplying its current price by the number of coins in circulation.