A decentralized exchange (DEX) known as Serum has recorded a huge boost in the trading price of its native token. The particular exchange operates on the Solana blockchain and its native token is Serunm (SRM).
Following the FTX crash, it was revealed that the Serum had ties with it. Therefore, many thought that the trading price of the exchange’s native token would take a major hit.
However, the actual outcome has been completely opposite to what the market had expected. Since the crash of the FTX exchange, the trading price of the SRM token has continued to move upwards.
SRM Token’s 140% Surge
The daily chart for SRM shows that the particular asset’s value has risen by 140% against the value of the USD in the past 7 days.
On November 14, the trading value of the asset was recorded at a low of $0.177 but by November 21, the asset’s price has risen to $0.319.
After SRM’s price surge, the market valuation of the asset has also moved higher. In the recent trading sessions, the market capitalization of SRM has risen to a high of $73 million.
The fully diluted market capitalization of the token has also recorded a surge and it is currently traveling near the $2.8 billion mark.
SRM is Surviving the Difficult Times
As the FTX collapsed, the investors also showed their anger against any cryptocurrency firms or assets that were connected with it.
Therefore, multiple cryptocurrency assets ended up facing huge plummets in their trading prices. Even a cryptocurrency as big as Solana (SOL) was not able to succumb to the wrath of the investors.
Solana recorded a major plunge in its value and multiple cryptocurrency exchanges, including Binance delisted the trading pairs the Solana-based USDT and USDC had on the platform.
Just like Solana, SRM also found itself on the hit list and the exchanges also delisted its pairs with another crypto on their platforms. These exchanges included Phemex, Gate.io, OKX, and even Binance.
This is because the majority of the firms and investors feared that SRM would also exit like the FTX exchange.
SRM is a Reserve Currency for FTX
Due to the FTX crash, the exchange now owes almost $10 billion in liabilities to creditors as well as investors.
Therefore, the exchange executives had no choice but to file bankruptcy to settle the matter. In the bankruptcy report submitted by the FTX legal teams, it was confirmed that the SRM is one of the reserve currencies.
The information confirmed that out of the total reserves $5.4 billion worth of reserves were stored in the form of SRM. This indicates that a major sell-off may be witnessed in the trading price of SRM in the future.
The $5.4 billion figure equates to 97% of the total circulating SRM tokens. This is an alarming situation for investors and they must remain cautious when investing in SRM.