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A cryptocurrency experiencing a significant upward market trend is said to be “mooning,” a term frequently used as a verb. “To the moon” is a phrase that often relates to a strong conviction that the price of a particular cryptocurrency will soon increase dramatically.
In this blog, let’s learn what this phrase means.
The birth of the “to the moon” term
The financial and cryptocurrency ecosystems have given rise to several words and colloquialisms, just like many other specialized fields (slang and memes). The phrase “to the moon” is frequently used within the cryptocurrency community, particularly among investors and traders, even though it is not exclusive to the blockchain business.
However, in actual usage, the phrase appears to be overused because a clear upward tendency is not always there. It’s important to note that many cryptocurrency supporters and influencers use the term to convince people online via social media that a particular coin or token is about to fly to the moon. In reality, however, the majority of them are merely “shilling their bags,” that is, attempting to sway the markets in favor of their assets.
This phenomenon was most evident during the 2017 bull market, when traders, investors, and even the general public became ecstatic about the rising value of cryptocurrencies and the price of Bitcoin.
To go to the moon, how does Crypto gain that much value?
When you have the right cryptocurrency, mooning can be pretty beneficial. However, how and why does one cryptocurrency gain while another might fall in value? The same factors that define value in other markets also determine that more or less: Demand and supply.
Holders of a particular cryptocurrency (supply) may demand a higher price on cryptocurrency exchanges when there are more buyers (demand) for it. In addition, prices and values will be determined by the supply and demand for NFTs, houses, vehicles, and the stock market in general.
Famous examples of “to the moon” Cryptos
Depending on how you choose to define “mooning,” cryptocurrencies frequently engage in it. For instance, we already mentioned Bitcoin’s mooning in 2017. But here are a few more instances:
- From about $0.01 in January 2021 to more than $0.70 in May 2021, Dogecoin‘s (DOGE) price increased.
- Also, in 2021, the value of Ethereum (ETH) “mooned,” increasing from less than $1,000 to about $5,000 between January and October 2021.
Reasons behind Cryptos going “to the moon”
#1 Hype/Fear of Missing Out (FOMO)
One of the main factors that cause a cryptocurrency to hype is when it is pushed up by an influential investor, a marketing company, or even an acquaintance. When an item is adequately hyped, the price will undoubtedly increase as investors want to get in on the action before it explodes as predicted.
Then, in addition to the excitement, we experience fear of missing out, or as commonly known, FOMO. It may cause people who have not yet made an investment to feel like they are losing out on a chance, which may push them to begin purchasing.
Hype and FOMO, by themselves, have the power to send cryptocurrency to the moon. However, bear in mind that assets that move as a result of FOMO and excitement nearly invariably return to Earth.
News and announcements are more sensible justifications for a crypto asset to soar. However, this could imply several things.
Any specific actions that will increase the asset’s value and utility can be announced by a project, such as switching to their chain, airdropping new tokens to stakeholders, changing the network’s protocols, or migrating to their chain. As a result, as investors make predictions about the coin or token’s future worth, the price rises incredibly.
#3 New Partnerships
Another rational reason for a virtual currency to soar is if it enters into strategic partnerships with other blockchain projects, organizations, and/or governments.
#4 Bull Run/Market
The most obvious justification for cryptocurrency’s rise to the moon is this. When the market is rising or predicted to rise, this is referred to as a bull run.
When a new high is achieved, the run can stretch past the moon, but prices will eventually decline, so be careful when investing in a bull market. In this scenario, the “bulls” are buyers who perceive an opportunity and start buying up Crypto, pushing it to record new highs.
In the cryptocurrency ecosystem, a cryptocurrency that has experienced a sharp increase in value is referred to as going to the moon.
“To the moon” is just one phrase used by insiders in the crypto space. You can learn more about such terms in the WazirX glossary section. Click here!Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.