Safemoon Price Analysis and Future Outlook

Since its launch on the BNB Chain in March 2021, Safemoon (SFM) has attracted widespread attention in the cryptocurrency market with its unique tokenomics model. As a phenomenal project among meme coins, it has attracted a large amount of speculative capital through high transaction fee dividend mechanisms, but has also faced scrutiny due to extreme volatility and regulatory controversies. Now, after experiencing price collapse, bankruptcy acquisitions, and strategic restructuring, Safemoon is attempting to transform from a community-driven meme coin into a utility 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

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

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

This mechanism was once hailed as “innovative” by the community, but it has also been criticized as a “Ponzi structure”, which has become the source of sharp price fluctuations.

Current Price and Market Performance: Struggling in the Low

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

• Real-time 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 sluggish: the Fear and Greed Index is at 28 (Fear), with only 9 trading days up in the last 30 days, reflecting insufficient investor confidence.
• Liquidity Crisis: The 24-hour trading volume is below $300,000, and most major exchanges have delisted the token, exacerbating the difficulty of buying and selling.

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

Future Price Prediction: A Highly Divergent Outlook

The market has significant differences regarding the long-term value of Safemoon:

• Optimistic forecast: Some analysts believe that its deflationary mechanism will drive a slow recovery, with prices likely to reach $0.05 to $0.10 in 2050 (3,000 times higher than current prices). If the transformation is successful, it may exceed $0.01 in 2030.
• Conservative expectations: Most institutions predict that the price range in 2025 will only be between 0.000053 and 0.000065 USD, and it will be difficult to exceed 0.00043 USD by 2030, emphasizing the need to overcome the lack of liquidity and the crisis of trust.
• Key variables:
  • Token burn rate: If destruction accelerates, scarcity may drive up the price;
  • Practical application scenarios: user conversion rates for products like wallets, DEX, etc.;
  • Market cycle: Bull market or driving Meme sector rebound.

Investment Value and Risk Assessment

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

• Potential Opportunities:
  • The price is close to historical lows, and if ecological reconstruction is successful, there is huge room for rebound;
• The coin holding dividend mechanism may attract funds during a bull market.
• Risks that cannot be ignored:
  • Regulatory risks: Multiple countries are strengthening scrutiny on Meme coins, and lawsuits are not fully resolved;
  • Competitive pressure: Meme coins like Pepe and Dogecoin divert community attention;
  • Technical concerns: The team retains the right to modify the contract, deviating from the principle of decentralization.

Conclusion: Is Pragmatism the Ultimate Salvation?

The rise and fall of Safemoon is the epitome of the speculative nature of the cryptocurrency market. Its tokenomics model, which once created a wealth myth, also collapsed due to a lack of intrinsic value. The current transition to a utilitarian project is the key to determining whether it can transcend the “meme coin life cycle”. If ecological products can be implemented and real demand is generated, SFM may gradually restore trust; If the transformation stalls, it could become another cautionary tale in the history of blockchain innovation. For investors, staying rational in the midst of volatility is the only way to thrive in the high-risk crypto world.

Author: Blog Team *This content does not constitute any offer, solicitation, or recommendation. You should always seek independent professional advice before making any investment decisions. *Please note that Gate may limit or prohibit all or part of its services from restricted areas. Please read the user agreement for more information, link: