Songbird price prediction: Can it soar again?
Songbird is showing signs of slowing as the Flare mainnet gears up for launch next month
There are few projects like Songbird (SGB) in the crypto world, where the purpose is to expose flaws and be pushed to the limit. This is in the hope that Songbird will improve the development of another network, named Flare.
As Flare gears up for the launch of its network next month, Songbird has begun taking a sideline. SGB has seen its value plummet over the previous months. However, a recent rally has seen some forecasters make bullish predictions for Songbird.
What is Songbird (SGB)?
The concept of a ‘canary’ network – as in a canary in the mine, warning of dangers – was pioneered by Polkadot with its Kusama blockchain. Its purpose is to be a testing ground for the mainnet, allowing developers and users to stretch the boundaries of the blockchain without worrying about repercussions.
Songbird is a canary network for Flare, which is building a type of consensus protocol that does not rely on mining or staking. Flare has two main products. The Flare Time Series Oracles (FTSO) gives external information to the Flare network using a decentralised method. Meanwhile, an F-Asset is a new token standard that represents assets from another blockchain.
The Flare network is yet to launch, so the priority for Songbird at the moment is the testing of Flare’s architecture. This will include checking F-Asset and FTSO functionality, with hopes of improving stability for the actual launch of Flare.
Songbird has a longer-term purpose as well. After the launch of Flare, its aim is to test new features and updates to the mainnet. This could result in the canary network being more advanced, while the Flare network offers more stability.
Songbird (SGB) is the native token of the canary network. It will have the same distribution ratio as the Flare (FLR) token, and has a starting supply of 15 billion SGB with inflation of 10% every year. Aside from testing Flare, SGB can be used as a governance token for key decisions, such as the addition of F-Assets or new blockchain compatibility.
There is a clear utility to the Songbird network. But will investors prefer the testbed or the real network?
SGB’s past performance
Songbird decided to airdrop its tokens to XRP holders on 16 September 2021. It was then listed on CoinMarketCap at $0.29 on 28 September 2021, making it a relatively new addition to the crypto market.
The token got off to a good start and surged over the next two days, reaching its all-time high of $0.71. This came as a decentralised exchange named FlareX was launched on the Songbird network, according to the Flare Community Twitter.
The price of Songbird corrected to the $0.43 mark on 2 October 2021, but soon jumped again. The trading platform Uphold revealed it was listing Songbird on its exchange and would airdrop the token on 29 October. By 6 October 2021, SGB was trading around the $0.59 level.
The cryptocurrency fell over the following week, however, stooping below $0.40. SGB managed to start rallying again at the end of the month. It saw a surge hitting $0.56 on 28 October 2021 after Binance supported the airdrop for XRP holders. The snapshot for the airdrop, when the list of eligible XRP holders would be created, was taking place on 12 December.
Songbird climbed even further on 1 November 2021, hitting a peak of $0.64. This came as a partnership between Allianceblock and Flare was unveiled and would start taking place on the Songbird network. Flare tweeted: “This phase of the partnership will establish cross-chain interoperability for both projects and networks, as well as lay the foundation for the implementation of other solutions.”
After the announcement, SGB settled back to the $0.40 mark for the rest of the month. It climbed above $0.50 again on 3 December 2021 as Huobi Global completed the Songbird airdrop and allowed SGB withdrawals on the platform.
It peaked again on 12 December 2021, when Binance took the snapshot for its SGB airdrop. Another snapshot took place that day as well, for an EXFI airdrop. This is the token for Flare Finance, a DeFI platform being built on the network, which sent its tokens to SGB holders, based on the snapshot from 12 December.
The value of Songbird plummeted after these snapshots. On 14 December 2021, it had sunk below its launch price to $0.24. The coin continued falling over the coming months and dropped to an all-time low of $0.01 on 16 May 2022.
There is no clear reason behind SGB’s loss in value. Some might speculate that it was down to the finishing of the snapshot. It could also be due to Flare revealing that it was close to launching its main network, taking away some of Songbird’s utility. Flare announced, on the day of Songbird’s low, that its mainnet was undergoing an audit and would be ready on 4 July 2022.
However, SGB did see a bounce back after stooping to its all-time low. On 17 May, it jumped 75% in a 24-hour peroid and hit $0.03. This came after it was listed on Rabby, a wallet designed for DeFi users. The token has managed to sustain these gains and at the time of writing, on 28 June, it is sitting at $0.032.
Songbird price prediction
There is a mixed sentiment about whether Songbird can keep this momentum going. While some think the coin will rise, others expect it to continue its bearish trend.
WalletInvestor is in the latter camp, describing SGB as a “bad” long-term (one year) investment. Its Songbird price prediction for 2022 thinks it will fluctuate between $0.003 and $0.006. It expects SGB to continue this trend throughout the coming years and into 2027.
An even more bleak SGB price prediction comes from Gov Capital. By the beginning of July 2022, the site predicts Songbird to be worthless.
On the other hand, DigitalCoinPrice thinks Songbird can start flying again. It forecasts SGB to reach $0.04 in 2022 and gives a Songbird price prediction for 2025 of $0.059. Its Songbird price prediction for 2030 is $0.15. The following year, DigitalcoinPrice predicts the cryptocurrency will hit $0.17.
PricePrediction.net is even more bullish on SGB’s potential. Its Songbird coin price prediction estimates it to race from $0.039 in 2022 to $0.17 in 2026. SGB is predicted to climb past the psychological $1 barrier in 2031.
It is a similar forecast from TechNewsLeader, whose Songbird price prediction anticipates it reaching $0.16 in five years’ time and $1.08 in 10 years’ time.
Songbird is in a unique situation. It was not designed to be a perfect, faultless network and token. In fact, it was created to be the opposite: to expose flaws and test the full capabilities of the network. SGB might not be able to live up to investors’ expectations, but it is already proving its value to the Flare ecosystem.
Songbird was created with a 15 billion SGB maximum supply that would increase by 10% every year. According to CoinMarketCap, there is a circulating supply of 9.9 billion SGB.
It could be. Songbird is being used to create innovative projects without any limitations. But there are risks to this, as third-party applications are not audited by the network.
Remember, you should always do your own research before investing.
There is a mixed consensus from SGB price predictions over its future. While PricePrediction thinks it can reach $1 next decade, Gov Capital expects it to be worthless in a year’s time.
Remember, cryptocurrencies are highly volatile so you should never invest more than you can afford to lose.
It depends. The Songbird network and token are being used as a testing ground for the Flare project. While it offers a more advanced network, it is designed to expose flaws.
Investors should always do their own research before buying any cryptocurrency.