SRM Crypto Price Surge Following the Emergency Fork

In response to the recent theft of Sam Bankman-Fried’s embattling crypto exchange FTX, a decentralized exchange protocol on the Solana blockchain, Serum saw its SRM tokens jump in the digital asset markets on Tuesday.

Following warnings that the security may have been jeopardized by the Nov. 11 attack, the community forked the project, which is blockchain-speak for effectively duplicating the underlying software code and starting over.

Alarms have caused the price of SRM to crash, making the token one of the largest losers in the cryptocurrency markets. The token suddenly became one of the greatest winners thanks to the rebound.

Around 23:30 UTC on Monday, the price of serum (SRM) began to soar, rising from a low of 12 cents on Sunday to a high of 32 cents on Tuesday. As at the time of publication, the token has decreased to 29 cents. In the previous year, it has decreased by 95%.

The important liquidity aggregator Jupiter Aggregator, which integrates with Serum and is used by Solana DeFi, tweeted on Tuesday that it was already testing an integration of the new version and would “announce it as soon as it’s done.”

Although Riyad Carey, an analyst with the cryptocurrency analysis firm Kaiko Research, said it’s “unclear how the SRM token would fare if the fork gains traction,” the community’s “rallying behind a fork” is most likely what caused the price jump.

When Bankman-crypto Fried’s empire, which included the FTX exchange and trading firm Alameda Research, collapsed last week, Kaiko had noticed in a research study published on Monday that the SRM tokens had experienced a dramatic decline in market depth on cryptocurrency exchanges.

This dynamic seemed to change on Tuesday: According to Clara Medalie, head of research at Kaiko, the total number of SRM tokens on the Serum order book indicates that SRM’s liquidity on the biggest exchange is now larger than it was before the crash.

Market makers have, according to Medalie, “built up support on the crypto exchange for SRM since the crash.”

She claimed that “market makers are shifting funds to the biggest crypto exchange to bolster price.” On almost every other exchange, liquidity disappeared.

Anatoly Yakovenko, a co-founder of Solana, said on November 12 that Serum-reliant developers had forked the software since “the upgrade key to the existing one is compromised.” Many methods, according to him, rely on serum markets for liquidity and liquidations.

According to Brian Long, a well-known validator, the initiative to replace Serum with a community-led open-source alternative has rekindled interest in the industry.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing