The Best Crypto Exchanges to buy and hold Serum (SRM)

The Best Exchanges to buy and hold Serum (SRM)?

Do you want to buy and hold Serum (SRM)? Now you are looking for an exchange to invest in Serum (SRM)?

Check out the 4 best exchanges to buy Serum (SRM) today.

Serum is a unique DeX on the Solana blockchain that combines the decentralization of cryptoswap with a protocol-maintained order book format. This combined model is a revolutionary concept with many advantages, so serum is a promising project worth exploring.

Serum’s native token, SRM, trades at $7.50 and provides a circulating supply of 50 million tokens. It has a market cap of approximately $375 million.

Decentralized Exchanges ( DeXs ) are now a big part of the DeFi industry. Their independence of not relying on a central authority is a valuable asset that many cryptocurrency traders appreciate. These exchanges, in most cases, rely on the Automated Market Maker ( AMM ) model to facilitate crypto asset swaps. Unlike central exchanges ( CeXs ), DeX does not have an order book to process transactions.

Invest in Serum (SRM) on Bybit

What is Serum (SRM)?

Serum is a DeX platform that does not rely on AMM-based pools for functionality. Instead, the platform has an order book that is used to match traders who wish to exchange cryptocurrencies. However, this order book is very different from the order book used by CeXs.

Traditional CeX order books are managed by a central entity behind the exchange. An order book lists buy and sell orders that can be viewed and traded. Once a trader finds a preferred order, it allows them to trade crypto assets. If a dispute arises due to a transaction, the exchange itself will arbitrate the dispute.

Open Bybit’s Crypto Account

What is a central limit order form for serum?

The Serum Order Book, called the Central Limit Order Book (CLOB), is an on-chain distributed ledger that uses an algorithm to automatically match orders. CLOB finds the optimal order according to the preferences specified by the user.

Set the price, amount and direction of the swap you want and the platform will offer you the best order for you. Significantly reduce manual searches or scrolling in the search for the best deals.

In addition, CLOB maintains the principle of decentralization, which many traders value. Traders will be trading with other users of the platform rather than the AMM pool, while swap trading is fully decentralized.

Go to Bybit’s Official Website

How Serum Works

Serum’s unique features allow you to quickly and efficiently find the best swap order. This feature of the protocol can be attributed to the Solana blockchain that it is equipped with. Solana is famous for being faster than other blockchain platforms, including Ethereum, the platform on which most DeX is based.

Solana’s Transaction Speed

Ethereum can currently execute around 15 transactions per second, while Solana boasts a speed of around 65,000 transactions per second. Most of the functions of the Serum Algorithm depend on Solana’s speed and efficiency.

Cross Chain Asset Swap

Serum also supports cross-chain asset swaps. Traders can utilize the platform with tokens on other blockchains. For cross-chain swaps, traders must first send collateral to Serum’s smart contract address, which can be read by both Solana and Ethereum.

Collateral is used to avoid possible transaction disputes. Traders can provide collateral in Ether and execute the swap as soon as collateral arrives at the Serum smart contract address. Cross-chain swaps can be performed with ERC-20 token, which is the default token standard of Ethereum, or SPL token, which is the token standard of Solana, and BTC.

Upon successful completion of the trade, the collateral is returned back to the trader. In case of a dispute, evidence is sent to the smart contract address for investigation. Upon completion of the investigation, the funds will be returned to their rightful owners.

With this collateral-based system, Serum gracefully acts as a mediator in swap disputes despite being a decentralized platform. Unlike dispute resolution in CeX, the entire process is automated through smart contracts. The automated dispute resolution process uses Oracle, software that acts as a bridge between the blockchain platform and the real world.

50 swap pairs

Serum currently offers around 50 swap pairs. It is possible with most major cryptocurrencies such as BTC, ETH, LINK, and SOL. Large cap stablecoins such as USDC and USDT are also commonly swapped on the platform.

The three most actively traded coin pairs on the platform are SOL/USDC, BTC/USDT and BTC/USDC.

Low transaction fees

Serum’s transaction fees are very low. On average, it costs less than a cent per swap. Due to Solana’s efficiency and low gas cost, serums can be priced extremely low.

In addition, SRM token holders can get up to 60% discount on fees. SRM tokens are also used to pay transaction fees on the platform.

Invest in Serum (SRM) on Bybit

Who make serums?

Serum was founded by renowned blockchain industry entrepreneur Sam Bankman-Fried. He is one of the richest people in the blockchain world who founded Alameda Research, a provider and investor of the FTX Exchange and cryptocurrency liquidity pool.

Serum Project has a business advisory team of 11 senior blockchain strategists and technologists. Bankman-Fried is one of the advisors, and the team also includes prominent figures in the blockchain and crypto space. Among them are Robert Leshner, founder of COMP protocol, and Long Vuong, founder and CEO of TOMOChain (TOMO).

Serum has raised more than $20 million in total in venture capital (VC) through six funding rounds. Ten individual and institutional investors raised the funds. The main investor in this project is GVB Capital, an investment firm specializing in cryptocurrency and blockchain projects.

Open Bybit’s Crypto Account

Serum (SRM) price history

SRM was launched in August 2020 and in the first half traded on the market at around $1-2 per token. From the end of January 2021, the SRM has steadily increased in price, reaching $11.70 in early May. This rise coincided with the entire crypto market bubble in early 2021.

In May, the entire market plummeted and the price of SRM tokens plummeted, and by mid-July SRM was trading at around $2-3. However, unlike many other cryptocurrencies that did not recover from the market downturn, SRM made a resurgence at the end of July. Since then, the value of SRM has more than tripled and is currently trading at $7.50.

The resurgence of SRM after the crash is a sign that blockchain investors and users have come to know the usefulness of the concept and features of the platform.

Serum’s Total Deposited Assets (TVL), which measures the sum of funds allocated to the protocol by users, was first reported in early April of this year. At the time, the amount was $286 million and rose sharply to $628 million in mid-May, but fell to its lowest point in mid-June, down 80% per month to $130 million.

However, as mentioned earlier, Serum is one of those crypto projects that have successfully weathered the market downturn. TVL has recovered quickly and has risen 200% in the past three months to around $400 million today.

Invest in Serum (SRM) on Bybit

Serum’s perspective

The outlook for serums is positive in the short term, but in the medium to long term, it could change significantly depending on important market developments.

The Serum platform showed a rapid recovery after the cryptocurrency market crash in early 2021, and is still moving forward. SRM price, market cap, and TVL, which are key indicators, are all in an upward trend.

Remarkably low transaction fees and fast and efficient order matching algorithms are the key drivers of the current Serum’s successful performance.

However, significant market developments in the coming months could negatively impact the serum. This market development is a complete migration to a proof-of-stake (PoS) block verification model and a version 2.0 upgrade that Ethereum is planning. Once the upgrade is complete, Ethereum, which is densely populated with Serum’s competitor DeX, will be able to process 100,000 transactions per second, breaking out of the current slow rate of only 15 transactions.

Since Solana (Serum’s underlying blockchain) can process up to 65,000 transactions per second, an Ethereum upgrade could negate Serum’s superiority over many other DeXs in speed, efficiency and transaction fees.

Open Bybit’s Crypto Account

Conclusion

Serum is a unique Solana-based protocol that combines the decentralization of cryptocurrency swaps with an on-chain order book used to deliver optimal orders to app users. Cross-chain swaps are efficiently executed using a collateral-based approach to avoid transaction disputes.

Because Solana’s technology has an edge over Ethereum, Serum can offer faster speeds and lower transaction costs than many of its competitors.

Currently, serums are showing impressive market performance with a TVL of about $400 million. The prices of both TVL and SRM are also rising.

However, as Ethereum is about to upgrade to a much faster network speed, Serum poses a serious threat to its survival as well as its market performance. Ethereum’s upgrade will ultimately be a test that confirms the robustness of the serum business model.

Invest in Serum (SRM) on Bybit