Serum (SRM) is one of many DEX tokens. Does anything make it stand out from the crowd? Join us for an investigation, and a look at some of the serum price predictions that were being made as of 29 September 2022.
SOL/USD price chart
If a cryptocurrency is to have any value at all, then it needs to be able to be bought, sold or traded. The most common place for this to happen is on a crypto exchange. There are ultimately two kinds of crypto exchange. The most common is a centralised exchange (CEX), which are established and run by de facto organisations. People are only able to operate with the currency pairs that the exchange lists. Most of the time, people need to go through Know Your Customer checks before they can start operating.
The restrictions of CEXes mean that there is another kind of exchange, the decentralised exchange, or DEX. These allow people to trade whatever coins and tokens they want, although a DEX can be more complicated to use than a CEX.
Decentralised exchanges, as their name suggests, are all part of the wider world of decentralised finance. There are billions of people in the world with no bank account who own a mobile phone. They still need to be able to have access to financial services. This is, ultimately, one of the key drivers behind both cryptocurrencies and the world of blockchain technology as a whole. If people without access to a bank account can still access savings and loans, DeFi supporters say, there will be more financial inclusion, which can only be a good thing. Since cryptocurrency is designed to take control away from centralised institutions, then DeFi is the concept at the heart of crypto.
Serum is one of the many DEXes set up over the past decade or so. The platform operates on the Solana (SOL) blockchain and is permissionless, which means that two different users can carry out a transaction without having to gain the permission of a central authority figure on the network. Solana was picked, at least in part, because it had a reputation for being fast and, as a result, cheap to use, meaning that Serum’s users should not have to worry too much about high transaction fees.
The platform utilises a limit book and matching engine in order to help transactions take place. This means that the system’s customers can decide how big a trade is and the price that the trade will go for.
The system’s whitepaper says: “Serum provides a fully on-chain orderbook, allowing applications such as trading interfaces to ‘plug into’ Serum’s composable ecosystem.
“Serum lives in the heart of the ecosystem, providing services to its ecosystem applications, each with their own technology and set of users. Anyone can create a trading application that leverages Serum’s liquidity and its ecosystem benefits.
“To illustrate this concept: an order made on one decentralised application (dApp) composing with a Serum orderbook market can be matched with an order made on completely separate dApp composing with that same market.”
“Retail traders, developers, and algorithmic traders can all connect to Serum and leverage its shared liquidity, or build a marketplace.”
Every blockchain-based platform needs its own crypto, and Serum has the serum token, also known by its ticker handle, SRM. The crypto is used to give holders a discount on fees on the network. In addition, people who hold SRM can take part in votes on changes to the network.
There are no official founders of SRM listed, which might deter potential investors who want to know who they can hold accountable for the crypto’s performance. However, according to the whitepaper: “Project Serum is built by the Serum Foundation, a group of experts in cryptocurrencies, trading, and decentralised finance. While they have built the Serum protocol, it is permissionless: they do not hold special power anymore.”
Because SRM is based on both the Solana and Ethererum (ETH) blockchains, it is a token, rather than a coin. You might see references to such things as a serum coin price prediction, but these are, technically speaking, wrong.
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Serum price history
While past performance should never be taken as an indicator of future results, knowing SRM’ price history can help give us some much-needed context when it comes to either interpreting a serum price prediction or else making one of our own.
Serum first came onto the open market in August 2020, when it was worth about $1.69. A booming crypto market at the start of 2021 helped SRM, and it reached a periodic high of $11.30 on 3 May. On 11 September 2021, around the time that it was announced that 131,000 SRM had been burned in a week, the token hit its all-time high of $13.72. It was a descent from there, though, and SRM closed the year at $3.42.
Things have gone downhill for SRM in 2022, much like they have done with the crypto market as a whole. The token experienced peaks and troughs in the first few months of the year but, following the depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency, serum plunged to $0.9794 on 12 May. Things got worse the next month when the Celsius Network (CEL) crypto lending platform cancelled withdrawals and SRM dropped to $0.7517 on 19 June. There was a recovery after that, with the token breaking back past the dollar but, in the middle of August it fell down and, by 29 September 2022, serum was trading at around $0.75. At that time, there were just over 263 million SRM in circulation out of a total supply of a little under 1.1 billion. This gave the token a market cap of around $198m, making it the 132nd largest cryptocurrency by that metric.
Serum price predictions
Serum price predictions being made as of 29 September 2022 vary widely, from almost $30 by 2031 to zero by the end of this year. It is important to remember that price forecasts, especially when it comes to something as potentially volatile as cryptocurrency, very often end up being wrong. Many long-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice.
CoinCodex had a short-term serum price prediction for 2022 that said the token could drop in the short term, moving down to $0.745786 by 4 October and dropping further to $0.578930 on 30 October. The site also said that technical analysis indicated that the overall sentiment regarding SRM was bearish, with every single one of the site’s 26 indicators giving bearish signals.
CoinsKid was rather more optimistic, making an SRM price prediction that suggested the token could close 2022 at $1.02 before potentially jumping to $1.55 in September 2023 and $2.32 a year on from then. The site went on to make a serum price prediction for 2025 which said the token could start the year down to $1.85 before recovering to $2.29 in September and closing the year at a potential $2.45. By September the following year, Coinskid thought serum could be worth $3.32, dropping to $3.10 in December 2026.
Meanwhile, PricePrediction.net had a serum crypto price prediction which argued that SRM could reach $0.91 this year before potentially hitting $1.33 next year and $1.96 the year after that. By 2025, the site said, serum could be worth $2.87, potentially reaching $4.25 in 2026, $6.18 in 2027 and $8.97 in 2028. PricePrediction.net suggested that SRM could close the decade having broken past the $10 mark to trade at a possible $13.56. It went on to make a serum price prediction for 2030 of $19.50, with the token potentially being worth $28.89 in 2031.
Gov Capital had a rather more downcast and bearish SRM price prediction. The site said that the token’s price would fall away pretty soon and, by 16 November 2022 it could have dropped so low as to not be worth measuring. That said, there was some room for hope, as Gov.Capital thought a recovery could take place, with serum possibly reaching a little under $4.09 on 29 September 2023 and somewhere between $8.76 and $8.77 in five years’ time.
When considering an SRM token price prediction, it is important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. Analysts and algorithm-based forecasters can and do get their predictions wrong.
If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. Never trade with money that you cannot afford to lose.
Is serum a good investment?
It is hard to say. In truth, with so many different DEXes out there, it will be interesting to see what Serum can do to stand out from the crowd and give its token a boost. Also, a lot will depend on the overall performance of the crypto market.
Remember, you should always carry out your own thorough research before making an investment. Even high market cap cryptocurrencies have proved vulnerable to the current bear markets. So investors should be prepared to make losses and never ut at risk any money you cannot afford not to get back.
Will serum go up or down?
It is difficult to tell. While sites like PricePrediction.net are rather optimistic in terms of their forecasts for SRM, the likes of Gov.Capital are far more negative. It is important to remember that price predictions very often turn out to be wrong, and that prices can go down just as easily as they can go up.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether SRM is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. Never stake money you could not afford to lose.
Should I invest in serum?
This is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research and if you cannot afford to lose it, do not risk your money, because prices will go down as well as up.