Safemoon Price Analysis and Future Outlook

Safemoon (SFM) has been since March 2021 in BNB Since its launch on the Chain, it has attracted widespread attention in the cryptocurrency market due to its unique token economic model. As a phenomenal project among Meme coins, it has attracted a large amount of speculative funds through a high transaction fee dividend mechanism, but it has also faced criticism due to its extreme volatility and regulatory controversies. Now, after experiencing a price crash, bankruptcy acquisitions, and strategic restructuring, Safemoon is attempting to transform from a community-driven Meme coin into a practical project. This article will delve into its current price situation, core mechanism transformation path, and future challenges.

The core mechanism of Safemoon: a double-edged sword of token economics

Safemoon The operational model is fundamentally different from traditional cryptocurrencies, with its core being the deflationary model and the holder reward mechanism:

• High transaction tax design: a 10% tax is levied on each transaction, of which 5% is redistributed to existing holders and 5% is converted into BNB to inject into the liquidity pool or to be burned. This allows long-term holders to passively earn new tokens, similar to “holding coins for interest.”
• Deflationary supply mechanism: By regularly burning tokens to reduce the total circulation, it theoretically enhances scarcity. For example, the total supply cap is 1 trillion tokens, but as of June 2025, the circulation is approximately 37.25 billion tokens, significantly down from its peak.
• Speculation and risk coexist: While this model encourages holding, it also leads to high volatility and low liquidity. In 2021, an investor made 2.3 million from an initial investment of 300 dollars, but the price plummeted by 97% that same year, and frequent trading may erode the principal due to cumulative fees (10% for buying + 10% for selling).

This mechanism was once praised by the community as “innovative,” but it has also been criticized as a “Ponzi structure,” becoming the root cause of severe price fluctuations.

Current Price and Market Performance: Struggles in the Valley

As of June 2025, the price and market value of Safemoon are both at historical lows:

• Current price: approximately $0.000016, market cap only $5.98 million, down over 99% from the historical high of $0.003382 in 2022.
• Market sentiment is weak: the Fear and Greed Index is at 28 (Fear), with only 9 trading days up within the last 30 days, reflecting insufficient investor confidence.
• Liquidity crisis: 24-hour trading volume below $300,000, most mainstream exchanges have delisted the token, exacerbating the difficulty of buying and selling.

This decline is closely related to the project’s history: the team filed for bankruptcy in 2023, and was later acquired by the VGX Foundation, but the progress of ecological reconstruction has been slow.

Future Price Prediction: A Greatly Divergent Outlook

The market has significant disagreements about the long-term value of Safemoon:

• Optimistic forecast: Some analysts believe that its deflationary mechanism will drive a slow recovery, with prices possibly reaching $0.05 to $0.10 by 2050 (an increase of 3000 times compared to the current price). If the transformation is successful, it may break $0.01 by 2030.
• Conservative expectations: Most institutions predict a price range of only $0.000053 to $0.000065 in 2025, and it is difficult to exceed $0.00043 in 2030, emphasizing that it needs to overcome the lack of liquidity and trust crisis.

• Key Variables:

  • Token burn rate: If destruction accelerates, scarcity may drive up the price.
  • Practical scenarios landing: User conversion rates for products such as wallets and DEX.
  • Market cycle: A bull market or a rebound in the Meme sector.

Investment Value and Risk Assessment

For investors, Safemoon represents a typical high-risk gamble:

• Potential Opportunity:

  • The price is close to historical lows, and if the ecological reconstruction is successful, there is huge potential for a rebound.
  • The holding dividend mechanism may attract funds during a bull market.

• Risks that cannot be ignored:

  • Regulatory risks: Multiple countries strengthen scrutiny on Meme coins, lawsuits not fully resolved;
  • Competitive pressure: Meme coins like Pepe and Dogecoin are diverting community attention;
  • Technical question: The team retains the authority to modify the contract, which goes against the principle of decentralization.

Conclusion: Is pragmatism the ultimate salvation?

The rise and fall of Safemoon is a microcosm of the speculative nature of the cryptocurrency market. Its token economic model once created wealth myths, but also collapsed due to a lack of intrinsic value. The current shift towards practical projects is crucial in determining whether it can transcend the “Meme coin lifecycle.” If ecological products can be implemented and generate real demand, SFM may gradually restore trust; if the transformation stagnates, it may become yet another cautionary tale in the history of blockchain innovation. For investors, maintaining rationality amidst volatility is essential to navigate the high-risk world of cryptocurrency.