• Serum (SRM) is a decentralized exchange software built on Solana where traders can buy and sell cryptocurrencies.
• SRM experienced peaks and troughs in the first few months of the year, but following the de-pegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency, serum plunged to May 2022.
• Things worsened in June 2022 when the token was further affected by the collapse of the Solana-based decentralized exchange SerumSwap.
Serum (SRM) is a decentralized exchange software that was built on Solana to facilitate the trading of cryptocurrencies. The platform was designed to offer users flexibility and control over their trading, by having a decentralized order book that mirrors traditional exchanges and matches buyers and sellers.
In 2021, the token experienced a strong surge in value due to the success of the Solana blockchain and the increasing demand for decentralized exchanges. However, things began to take a turn for the worse in early 2022. In May of that year, Serum suffered a major blow when the UST stablecoin was de-pegged, resulting in the collapse of the LUNA cryptocurrency.
The situation was further exacerbated in June when the SerumSwap decentralized exchange, built on Solana, also collapsed. This caused a significant drop in the value of SRM, as investors were now hesitant to invest in the token due to the instability of the platform.
However, despite the tumultuous year that SRM has endured, the token is still considered a safe haven for crypto investors. This is due to its decentralized nature, which allows traders to have complete control over their investments and transactions.
Furthermore, the token is still backed by the Solana blockchain, which is known for its speed and cost-effectiveness. As such, many investors are confident that SRM will eventually recover and possibly even exceed its previous highs.