Serum SRM/USD is a decentralized exchange software that is built on Solana.
On this DEX, traders can buy or sell cryptocurrencies, and the SRM token is the native utility token that enables holders to receive discounts on their trading fees.
The stakers of the SRM token can also vote and participate in the platform’s governance mechanism.
The $100 million allocations to liquidity mining as a catalyst for growthBack on October 12, we discussed if Serum (SRM) was worth buying after its sell-off at the time.
On October 28, Serum’s decentralized autonomous organization (DAO) announced the $100 million liquidity mining program as part of an effort to attract new users within the ecosystem.
The Total Value Locked in SERUM is at $1.6 billion as of October 28.
With the goal of supporting existing projects and further incentivizing new ones, Serum’s community, which is the driving force behind its success, voted to launch a liquidity mining program.
They allocated $100 million in rewards for Automated Market Makers (AMMs) that interact directly with Serum’s on-chain order book.
With the growth of the Solana ecosystem, this is an important opportunity to give back to projects and improve the economics as a result of these efforts.
Should you invest in Serum (SRM)?On October 29, Serum (SRM) had a value of $7.05.
To get a better perspective as to what kind of value point this is for the token, we will be going over it’s all-time high value and its performance in September.
The all-time high value of the SRM token was on September 11, when the token achieved a value of $13.78.
Its lowest point was on September 29, when the token fell to a value of $6.88.
Here, we can see that the value of the SRM token fell by $6.9 or by 50% throughout the month.
However, from September 29 to October 29, the token’s price increased by $0.17 or by 2%.
$100 million in liquidity mining is quite an incentive, which has the potential to get the value of the SRM token higher.
With this incentive, the token could potentially reach a value of $10 by the end of November.
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