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SERUM Token’s 10-fold Leap Sets Market On Fire

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  • After its first 10-fold last August, the Serum token achieved a second 10-fold, setting the market on fire.
  • Serum is built on top of the Solana blockchain and championed by Sam Bankman-Fried.
  • SRM token shot up to an all-time high of $11.13.

A second 10-fold increase for digital token Serum (SRM) has sparked a new wave of speculation in the market over the token’s future, which is apparently linked to the growing popularity of the affiliated decentralized exchange – Serum.

According to Messari, a data firm, prices of SRM tokens shot up on Tuesday to an all-time high of $11.13. As such, the market capitalization now sits around $500 million, well below the $22 billion for the leading decentralized exchange Uniswap’s UNI token.

Serum token’s success linked to Bankman-Fried

Analysts have attributed the recent success of the Serum project and Solana blockchain to their association with Bankman-Fried, who recently achieved a $135 million deal to name the basketball team Miami Heat’s home arena after the FTX exchange. However, Bankman-Fried, the CEO of FTX, told CoinDesk that he isn’t sure why Serum has surged this week, adding that it was probably following Solana’s SOL tokens, which have climbed 24-fold this year for a market value of between $12 billion and $22 billion.

Moreover, Alameda Research led investors earlier this week in a $2 million fundraising round for Step Finance. The Solana Foundation, which supports the development of the Solana blockchain, received $40 million in fresh funding in March.

FTX and Alameda, as per a blog post, created Serum and chose Solana as its foundational blockchain. Mira Christanto, a research analyst at Messari, said traders might be regarding Alameda Research-related names as “safe havens” during last week’s crypto-market sell-off.

What is Serum

Compared to Ethereum-based DEXs, Christanto says Serum is very different because it built a central limit order book (CLOB), which is what one would typically see in centralized exchanges. He said this isn’t possible on Ethereum or Binance Smart Chain, where automated market makers (AMMs) are more popular. The research analyst added that Solana isn’t as fast as centralized exchanges, like FTX, but it is the first decentralized exchange to provide a CLOB.

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