Decentralized Finance (DeFi) changed the face of the cryptocurrency market over the past year, drawing attention to both institutional investors and retailers as the traditional financial sector continues to warm to blockchain technology.
While most of the largest DeFi protocols, which have significant volume and value stored in the platform, operate on the Ethereum Network (ETH), high fees and slower transaction times have projects like Serum (SRM), a decentralized exchange (DEX), made possible. that works on the Solana (SOL) blockchain to gain popularity and gain market share.
Data from Cointelegraph Markets and TradingView show that the price of SRM has risen 127% over the past two days, from a low of $ 5 on April 24 to a new all-time high of $ 11.47 on April 26, thanks to a record high of USD 1.621 billion in 24-hour trading volume.
Solana network is gaining traction
A major contributor to Serum’s growth is the increasing importance of the Solana blockchain, the price of which also soared to a new record high on April 26th as new users and projects continue to investigate what the network has to offer.
The recent price hike at SRM is partly due 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 has helped boost the overall activity of the DEX and has increased its token value in the eyes of investors.
Bonfida and Raydium were so successful that they actually led to the devaluation of the original swap user interface developed by the Serum team, and quickly becoming the interface of choice for the Solana community after 24 hours.
YUGEEE! 65,000 visitors to @Bonfida, the most used Serum DEX front end in the past 24 hours. https://t.co/aOf78QD8Gx
– Serum (@ProjectSerum) April 26, 2021
Serum also offers token holders the option to wager their tokens to generate income from trading fees on the platform. The token also has a buying and burning mechanism that further reduces the circulating supply and helps increase the token’s value.
Cointelegraph Markets Pro’s VORTECS ™ data began to see an optimistic outlook for SRM on April 24 ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the graph above, the VORTECS ™ Score for Serum rose rapidly from a low of 49 on April 23rd to a high of 69 on April 24th, just two hours before the price rose 130% over the next two days began to rise.
Networks like Solana and DEXs like Serum appear to be the next generation protocols that are helping bring blockchain technology to the masses and ushering in a new wave of blockchain technologies and growth for the cryptocurrency ecosystem.
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