Built on the Solana blockchain, Serum (SRM) is a decentralized exchange (DEX) that brings unprecedented speed and low-cost transactions to the sector of decentralized finance (DeFi). By leveraging Solana’s technology, Serum achieves a block time of 400 milliseconds and a cost of $0.00001 per transaction. The DEX makes use of full on-chain limit order books with an interface similar to that of centralized exchanges.

SRM is the utility token of the Serum ecosystem and provides reduced fees on Serum, staking opportunities, and specialized governance rights. Although it’s a relatively new cryptocurrency, the price of SRM has already seen significant change, and if you want to know why then you’re in the right place. We’ve compiled everything you need to get a better understanding of SRM price – as well as the factors which influence it.

Serum Price History

SRM was launched in August 2020 with an initial coin offering (ICO) in which tokens were sold at $0.11 each. The price of SRM surged as soon as it hit the market, closing its first day of trading at $1.55. It broke $2 the next day and after several days of consolidation, SRM continued rising until it reached a peak of $3.95 at the start of September.

From there, prices gradually declined for the next two months, hitting a low of $0.76 in the first week of November. For the rest of the year, SRM was range-bound between $0.80 and $1.45. The coin ended the year with a value of $1.05 – a 73% drop from 2020’s peak price, but still an 855% improvement since the ICO.

In 2021, SRM immediately started to rally, rising to about $2.50 by the end of January. Further bullish momentum in February took prices up to $8.46, before a 50% pullback to $4.22 at the end of the month. March displayed some volatility, with highs of $6.90 and lows of $3.85.

Then in April, SRM experienced another surge which saw it surpass $10 for the first time. This continued into the start of May when SRM hit its all-time high of $13.16, representing year-to-date gains of over 1,150%. At that point, Serum had a market cap of more than $600 million. A trend reversal then occurred and the rest of May was fairly bearish, including a 44% crash on a single day, during which SRM touched lows of $4.34.

Analyzing Serum Price History

SRM price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis (TA) involves using various indicators while studying price charts in order to make sense of previous price movements. With SRM, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges.

Fundamental analysis (FA), on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. Serum was co-founded by Sam Bankman-Fried, who is well known in the crypto space for being the CEO of both crypto quantitative trading firm Alameda Research and cryptocurrency derivatives exchange FTX. Serum also has several experienced advisors from various other successful blockchain projects. A long list of well-known crypto enterprises have partnered with Serum, such as Kyber Network, ParaFi Capital, and Coingecko, and Serum integrations include Binance, OKEx and Math Wallet. These could all be good signs for the project’s fundamentals.

Broader market trends have also played a role in SRM price history. Its surge at the start of 2021 wasn’t unique – the entire crypto market pumped around this time. Bitcoin was in the midst of a major bull run then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

SRM’s sudden crash in May 2021 was also market-wide, affecting every single major cryptocurrency. Various contributing factors have been suggested, including comments made by Elon Musk, a crackdown by Chinese authorities, liquidations, and a healthy market correction.

The overall price trend of SRM tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Serum (SRM)

A variety of different things can affect SRM price, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider crypto and global economies.

SRM was launched with a capped maximum supply of 10 billion tokens, which are due to be unlocked gradually over a period of seven years. This makes SRM a scarce asset, like Bitcoin, and therefore potentially a good store of value in the long term. Serum also periodically buys back SRM to burn. This means that the total supply of SRM decreases over time, putting upward pressure on the token’s price.

Demand for SRM is driven by the token’s utility. SRM holders receive reduced fees on Serum, which encourages Serum users to buy and hold SRM. There will also be demand for staking. At least 10 million SRM is required to run a node and smaller holders can stake their tokens towards another node. Users who stake SRM earn rewards, which could incentivize more people to buy SRM for staking.

It is also anticipated that SRM will be used in specialized on-chain governance. This could drive further demand for the token as it enables holders to vote on issues that directly affect their bottom line. SRM holders will have a say in how all net revenue generated by the platform is used, such as for buy and burns, yield, and grants.

Demand for SRM will likely rise with the number of Serum users. Future upgrades, partnerships, and integrations that drive Serum adoption could therefore have a positive effect on the price of SRM.

Live Serum Value and Market Cap

The live price of SRM varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given SRM’s volatility, its live price can change by a large amount in a very short space of time. The market cap of Serum is equal to the price of SRM multiplied by the number of SRM in the circulating supply.

Serum Price FAQ

How is the price of SRM calculated?

SRM’s price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying SRM than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of SRM different on different cryptocurrency exchanges?

SRM’s price is based purely on trading as there is no standard global Serum price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affect the price.

How will the SRM supply be distributed?

Only 10% of SRM are in circulation for the first year. The other 90% will be unlocked linearly over the next six years. 20% of the SRM supply has been allocated to the team and advisors, 22% to project contributors, 4% to locked seed and auction purchases, 27% to the partner and collaborator fund, and 27% to the ecosystem incentive fund.

What will SRM be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of SRM. However, it seems likely that demand for SRM will rise with the number of Serum users, so future partnerships and integrations that drive adoption could boost the price of SRM.

Conclusion

Despite only being on the market for a relatively short time, the price of SRM has already seen significant change, going from its ICO price of $0.11 to highs of over $13. It hasn’t been a smooth journey though, as SRM’s volatility often leads to surges and crashes.

Many different factors have played a role in determining the price of SRM, including demand for staking and reduced fees, buy and burns, and trends in the rest of the crypto market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of Serum and cryptocurrencies!