SAFE, Safe Wallet’s native token, rose 20% when Bithumb listed the token on its platform.
Safe (SAFE) rose to $1.10 on January 10, up 20% from its monthly low of $0.924, while taking its market cap to almost $600 million at the time of writing.
The altcoin’s rally took place in a high-volume environment. Daily trading volume increased 429%, rising from $15 million early Thursday morning to more than $80 million.
Despite the recent rally, the altcoin still has significant growth potential, considering that SAFE’s price remains 69% below its all-time high of $3.56 in April last year.
SAFE gathered when Bithumb, a major South Korea-based crypto exchange, announced it would add a KRW trading pair for the SAFE token on January 10, along with SONIC and AHT tokens.
A SAFE/KRW trading pair allows 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.
Normally, a listing on a leading South Korean exchange such as Upbit or Bithumb results in a strong rally in the related token. An example of this was previously reported in October last year when SAFE secured a listing on Upbit, leading to a 72% increase in just one day.
SAFE also recovered due to increased demand among its derivatives traders. According to according to CoinGlass, open interest for SAFE on the futures market rose 151% over the past day to reach $19.5 million, much higher than the $5.5 million recorded at the beginning of the year.
However, it is important to note that post-listing rallies often experience a reversal as investors sell their holdings to secure gains. Notably, CoinGlass data shows that more than $5.96 million of SAFE was sent to centralized exchanges on December 10, compared to the $5.65 million that was withdrawn.
Furthermore, the weighted funding rate for SAFE at the time of writing was -0.6690%, meaning that short sellers dominated the market, with more traders betting on the price to fall lower.
Such levels also increase the likelihood of a short squeeze if the price moves higher, potentially forcing short positions to close.
At the time of writing, SAFE had wiped out most of its gains, down 7% from its daily high, and was trading at $1.01 per coin.
