334 Interactions, 2 today
The price of SRM has reached a record high as low fees and lightning-fast transaction rates continue to draw new customers to the Solana ecosystem.
Over the last year, decentralised finance (DeFi) has reshaped the landscape of the cryptocurrency industry, catching the interest of both institutional investors and retail traders as the conventional financial system seeks to embrace blockchain technology.
While the majority of the largest DeFi protocols with considerable volume and value locked in the platform run on the Ethereum (ETH) network, high fees and slower transaction times have allowed projects like Serum (SRM), a decentralised exchange (DEX) that runs on the Solana (SOL) blockchain, to gain traction and market share.
Data from TradingView shows that the price of SRM has rocketed 127% higher over the past two days from a low of $5 on April 24 to a new all-time high at $11.47 on April 26 thanks to a record $1.621 billion in 24-hour trading volume.
Solana network gains traction
The growing popularity of the Solana blockchain, which has also seen its price spike to a new record high on April 26 as new users and ventures begin to discover what the network has to deliver, is a big factor in Serum’s rise.
The recent increase in the price of SRM is due, in part, to the growing number of front-end user interfaces, such as Bonfida (FIDA) and Raydium (RAY), that provide access to Serum’s trading books. This increased cumulative activity on the DEX and increased the token’s worth in the minds of buyers.
Bonfida and Raydium have become so popular that they have caused the original swap UI created by the Serum team to depreciate, and they are rapidly becoming the interfaces of choice for the Solana crowd, with Bonfida seeing a spike in unique visitors and API requests over the last 24-hours.
— Serum (@ProjectSerum) April 26, 2021
Serum token holders may also stake their tokens to earn a return on exchange trade costs, and the token has a buy and burn mechanism that helps reduce the circulating supply and thereby maximise token worth.
With decentralised finance still in its infancy and large financial institutions just recently dabbling in the cryptocurrency industry, networks like Solana and DEXs like Serum seem to be the next generation protocols that will help bring blockchain technology to the mainstream and usher in a new age of growth for the cryptocurrency ecosystem.