Decentralized Finance (DeFi) has reshaped the face of the cryptocurrency market over the past year, drawing the attention of institutional investors and retailers alike as the traditional financial sector continues to warm up for blockchain technology.
While most of the largest DeFi protocols with a significant amount of volume and value locked onto the platform operate on the Ethereum (ETH) network, high costs and slower transaction times have enabled projects such as Serum (SRM), a decentralized exchange (DEX) operating on the Solana (SOL) blockchain, to increase in popularity and gain market share.
Data from Cointelegraph Markets and TradingView shows SRM price is up 127% in the past two days from a low of $ 5 on April 24 to a new high of $ 11.47 on April 26 thanks to a record high of $ 1.621 billion in 24-hour trading volume.
The Solana network is gaining traction
A major factor in Serum’s growth is the rising prominence of the Solana blockchain, which also saw its price rise to a new record on April 26 as new users and projects continue to explore what the network has to offer.
SRM’s recent price hike 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 helped boost overall activity on the DEX and increased its symbolic value in the eyes of investors.
Bonfida and Raydium have been so successful that they actually led to the depreciation from the original swap UI developed by the Serum team and are quickly becoming the interfaces of choice for the Solana community, with Bonfida experiencing a massive increase in unique visitors and API requests over the past 24 hours.
YUGEEE! 65k unique visitors to @Bonfida the most used Serum DEX frontend in the past 24 hours. https://t.co/aOf78QD8Gx
– Serum (@ProjectSerum) April 26, 2021
Serum also allows token holders to wager their tokens to earn a return from trading fees on the platform, and the token also has a purchase and combustion mechanism that further helps reduce circulating supply to help increase symbolic value.
VORTECS ™ data from Cointelegraph Markets Pro began detecting bullish outlook for SRM on April 24, ahead of the recent price hike.
Exclusive to Cointelegraph, the VORTECS ™ Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the chart above, the VORTECS ™ Serum score rose rapidly from a low of 49 on April 23 to a high of 69 on April 24, just two hours before the price started hitting 130% for the next two days. rise.
With decentralized finance in its infancy and big money players just now dipping their toes into the cryptocurrency sector, networks like Solana and DEXs like Serum appear to be the next generation of protocols helping to bring blockchain technology to the masses and create a new one. wave of growth for the cryptocurrency ecosystem.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move carries risks, you should do your own research when making a decision.