Is Serum A Good Investment?

Introduction

Serum is a protocol for decentralized exchanges that claims to bring the best of CeFi and DeFi through its on-chain orderbook design. Reportedly, Serum's vision is to become an important infrastructure for the Solana ecosystem. Serum (SRM) is the utility and governance token of Serum. By holding SRM in your wallet, you can receive a discount on fees. SRM is native to the Solana blockchain (as an SPL token) and is also available on the Ethereum blockchain (as an ERC20 token).

FTX, Alameda Research, and a consortium of other partners created the Serum Foundation and announced Serum, a new high-speed, non-custodial DEX that's built on Solana. Serum is a complete, non-custodial decentralized exchange running on an on-chain central limit orderbook (CLOB) on Solana's mainnet. More specifically, Serum is a high-performant DEX designed around a fully on-chain central limit orderbook and matching engine. DeFi has some traditional problems that Serum tries to address, namely high gas costs, slow transactions, centralization, low capital efficiency, and liquidity segmentation. Serum is permissionless and seeks to decentralize the entire DeFi stack.

How does Serum Work?

Serum provides a fully on-chain orderbook, allowing applications such as trading interfaces to 'plug into' Serum's composable ecosystem. Each application in the ecosystem has its own technology and set of users. Serum provides services to the whole ecosystem. Anyone can create a trading application that leverages Serum's liquidity and its ecosystem benefits.

To illustrate how Serum does its work, let's assume you make an order on one dApp composing with a Serum orderbook market. Your order can be matched with an order made on a completely separate dApp composing with that same market! This is the magic of Serum!

Financial Analysis

Talking about Return On Investment (ROI), Serum provided its investors with a 300% profit over the last year, which is almost double its similar projects' ROI. In other words, Serum exceeded in 'Solana Ecosystem, Decentralized Exchange Token (DEX), Decentralized Finance (DeFi), Exchange-based Tokens' categories which had 149% growth over the past year. However, Serum underperformed compared to the top 1500 projects' of the market which saw a 3,135% average return over the same period. You can have Free access to our full report about Serum here.

Market capitalization is an important factor to see how a project is working financially. Serum's rank in terms of market capitalization followed a U-Shaped trend over the last five months, from May to the end of September 2021, with a minimum of 234 on July 17. By the time of writing this post, September 28, it reached the rank of 98 among all cryptocurrencies in the market with more than $997 million worth. Also, as you can see in our report, its price followed an almost similar trend during the same period, starting at $10.29 on May 2, reaching the minimum of $2.45 on July 21, and then rising to $7.51 on September 28.

Liquidity score is a factor that shows how popular a project is, and therefore, how easy would it be to sell it in bear markets. According to our report, Serum enjoys a liquidity score of 64% above the market's average score.

Our data indicate that Serum's Twitter account saw an increase of 108% from May to late September 2021 in the number of followers. Moreover, the number of its Telegram channel users has risen by 42% over the same period. These figures show that Serum's marketing team is doing a nice job and they are gaining public attention. You can find our full report here.

Is Serum the best cryptocurrency to invest in?

We are here to help you make smarter financial decisions by freeing up your intelligence through making it easy to compare thousands of coins. We do all the hard work for you and help you remove emotions from your decisions. However, making an investment decision requires considering your own financial situation and comparing your investment options.

To see our reports and easily compare the available investment options, check out our website.