Cryptocurrency traders were agog last August when prices for the digital token serum (SRM) jumped 10-fold on its first day of trading after being listed on Binance, the world’s largest cryptocurrency exchange by volume.
But another 10-fold increase since then is sparking a new wave of speculation among digital-market analysts over the token’s future – apparently tied to the growing popularity of the affiliated decentralized exchange Serum, which is built on top of the Solana blockchain, and championed by Sam Bankman-Fried of the FTX crypto exchange and Alameda Research trading firm.
Prices for the SRM token shot up Tuesday to an all-time high of $11.13, according to the data firm Messari. The market capitalization now sits around $500 million, well below the $22 billion for the leading decentralized exchange Uniswap’s UNI token but still enough to turn heads. As of press time, SRM was changing hands at around $9.27.
Some analysts have attributed the recent success of the Serum project and Solana blockchain to their association with Bankman-Fried, who garnered headlines recently for his $135 million deal to name the basketball team Miami Heat’s home arena after the FTX exchange. According to a blog post last July, FTX and Alameda created Serum and chose Solana as its foundational blockchain.
“Traders perhaps saw Alameda Research-related names as safe havens” during last week’s crypto-market