The cryptocurrency market has seen an unexpected rise in the value of the SofaCat (SOFAC) token, which was barely known by anyone before now. In the last 24 hours SOFAC has seen a fantastic 69.10% increase in price up to $0.008542 per token.
This dynamic price movement has propelled SOFAC to centre stage with its market capitalization now hit $792,417.68. For all this hesitancy which may seem particularly paltry when compared to industry giants the token’s figure is important it’s now at #3101 in the overall cryptocurrency market.
A surge of trading volume has accompanied the sudden spike in SOFAC price and has risen by a mind blowing 6.13% to $501,267.04 in the past day. With this activity SOFAC has bumped up from #1367 to now #1367 in 24 hr trading volume, now all the space is increasing liquidity and interest in the token.
Obviously, one of the biggest eye openers regarding SOFAC’s recent activities has been its volume to market cap ratio, currently an imposing 63.08%. According to this metric, the amount of trading activity compares significantly with the overall market value of the token, suggesting not only that it is more in demand than common, but also that it attracts much speculated interest and even more adoption.
SOFAC’s tokenomics also give insight into its supply and distribution. 95.96 million out of the total supply of 95.96 million SOFAC tokens are self-reported circulating supply. And good liquidity and easy price discovery in the market might result from this huge percentage of tokens in circulation.
The total supply of SOFAC tokens is only 100 million and 99.96 million tokens are already in the hands of its community. Being a fixed supply model, this is seen by many investors as a positive thing, as it could in theory lead to scarcity fuelled value appreciation overtime assuming the demand for the token continues to increase.
The fully diluted market cap of SOFAC at current price and max supply is $854,237.51. This is just the theoretical market value if all tokens were up for sale on the current exchange rate but it offers up a glimpse at what the token could be worth if it ever ends up floating around long enough to make an impression.
No one knows why SOFAC suddenly spiked in price, which is reminiscent of other sales that were anticipated, but did not materialise this has prompted speculation among cryptocurrency followers. Other analysts suggest that the token may have been somewhat boosted in terms of visibility in social media platforms or in trading forums which may have led to a quickening of new investors. Some look to potential developments or partnerships that additionally could have been declared or believed, creating enthusiasm for the project.
However, we should mention one more thing: the cryptocurrency market is a highly volatile and unpredictable market of such dramatic changes in prices. As for less known tokens which spike in price regularly, investors should exercise caution as there is a lot of risk involved in any investment decision which promotes price rises through the novel mechanism.
Performance of the SOFAC token highlights the dynamic unpredictable nature of the cryptocurrency market. Smaller tokens like SOFAC’s have been rising and can provide enormous returns and brutal losses thanks to the rapid growth in the altcoin space, but you’re not likely to see much news about these coins as established cryptos like Bitcoin and Ethereum usually make the large headlines.
The crypto community closely watches SOFAC’s trajectory, questions rise about whether this price surge is sustainable, and what the long term prospects of the token will be. SOFAC will it continue its newly found momentum or is this a short-lived spike propelled by speculation?
Whether SOFAC can establish itself in the cutthroat world of cryptocurrency has only time to tell us. As a case study in the world of digital assets, fortunes can be made or lost in the blink of an eye, and that’s exactly what’s happening to the token right now.
Once again, investors should analyse such opportunities with a certain deliberation, considering the highs returns to be strived for and the inherent risks of the cryptocurrency market. The story of how SOFAC went from obscure to meteoric within just a few hours is still being written and there are plenty of days and weeks to come before crypto philistines and enthusiasts will stop staring it.
