The financial market is a dynamic environment that goes through ups and downs in cycles. The…
To the moon is a phrase that helps crypto enthusiasts communicate their state of excitement over a new cryptocurrency.
In this blog post we will learn the definition of the moon, how it started and its proper usage.
Definition of To the Moon in Cryptocurrency
The phrase to the moon conveys the strong belief of investors that a cryptocurrency will soon experience a significant rise in its price. When the cryptocurrency does increase in price, they describe it as ‘mooning’.
Origin of the phrase
Bitcoin’s first year in 2017 as a fully usable digital currency was remarkably successful. At the beginning of 2017, it gained a value of $1,000 which increased to $10,000 by December of the same year. However, it hit a troubled period in 2018 but quickly bounced back from that.
Cryptocurrency’s mooning hit its peak in 2020 and 2021. Bitcoin’s price reached $69,000 in the later part of 2021. Simultaneously, Ethereum’s price experienced a surge and achieved $4,800 at one time.
This period got all investors in a frenzy and many of them posted on social media. Due to the rise in crypto prices, it seemed to them that their digital currencies’ value flew to the moon.
Best Examples of To the Moon Phenomenon
There are two occurrences in the crypto world that best simplify this phrase. The first example is Dogecoin (DOGE). It went into a mooning phase when its price went from $0.01 in January 2021 to over $0.70 in May of the same year. Second, Ethereum experienced ‘mooning’ when its value increased to $5,000 in October 2021 after starting the year with a value of $1,000.
However, each cryptocurrency’s price increase has internal and external factors that influence it. So, it is difficult to generalize the required conditions for a cryptocurrency to undergo a ‘to the moon’ phenomenon.
Why do Some Cryptocurrencies Go ‘To The Moon’?
There are many factors that can push a cryptocurrency to undergo a to the moon phase. Here are some of the reasons why cryptocurrencies experience the phenomenon.
Fear of Missing Out (FOMO)
If there is enough hype for a new crypto coin or token, the price will increase. Popular people who promote the new cryptocurrency will attract the attention of investors. Hence, many people will invest in the asset due to FOMO.
News reports and announcements in social media can cause prices to go sky high. Any movement that is published in the news can have a profound effect on the prices of crypto assets.
The bull market can make a digital asset’s price achieve soaring values because investors believe that it is a good opportunity to make a profit and they buy a lot of cryptocurrency. As a result, the prices increase.
2022 proved to be a challenging year for the crypto world. It is precisely the opposite of mooning. However, this is a good time to reflect on your investment decisions and reconsider the cryptocurrencies you are currently invested in.
Crypto experts and enthusiasts are still optimistic of the next bull market. Hopefully, we see another to the moon phase where everyone can make the most out of their investments.