Serum price nearly doubled post the emergency fork in the aftermath of FTX exchange hack

Serum tokens price doubled after an emergency fork in the wake of FTX exchange hack.
Serum price hit a peak of $0.32 from a low of $0.16 over the past week.
The community of the decentralized exchange protocol forked the project after warnings that security may have been compromised in the FTX hack.

Ekta Mourya FXStreet

Solana-based decentralized exchange token, Serum (SRM), was forked by its community. A fork implies that developers copied the underlying software code and started afresh, protecting SRM holders from the November 11 attack on FTX exchange.

Also read: Crypto lender BlockFi prepares for potential bankruptcy in the aftermath of FTX collapse

Serum price nearly doubles, hits $0.30 with overnight gains

Serum, a decentralized exchange built on Solana, was forked by its community. SRM price nearly doubled from its weekly low of $0.16 to $0.30, recovering from the crypto market bloodbath and yielded 38.6% in gains overnight.

SRMUSDT 1-hour price chart

SRM tokens price soared despite the market-wide bloodbath in the crypto market. Following the FTX exchange hack, the Serum community forked the token. After copying the underlying code and starting SRM afresh, the token’s security was no longer compromised. This move instilled confidence among SRM holders and fueled a rally in the decentralized exchange’s token.

SRM price was among the biggest losers in cryptocurrencies after the FTX exchange hack. Its price started soaring around 23:30 GMT on November 14, As of press time, SRM is exchanging hands at $0.30.

SRM price is still 97.85% below its all-time high of $13.78. Riyad Carey, an analyst at crypto analysis firm Kaiko Research, was quoted as saying:

[The Serum price jump was likely due to the community] rallying behind a fork. It's unclear how the SRM token would fare if the fork gains traction.

Clara Medalie, director of research at Kaiko, argues that market makers are building up support on Binance for SRM since the crash. Jupiter Aggregator, a key liquidity aggregator for Solana’s DeFi ecosystem, announced that it is testing an integration of the new version of SRM and will announce it as soon as it's ready.

Medalie told CoinDesk:

Market makers are moving funds to Binance to support price. Liquidity evaporated on nearly every other exchange.

Anatoly Yakovenko, co-founder of Solana argued that a ton of protocols depend on Serum markets for liquidity. The upgrade to Serum is key to the DeFi ecosystem.

Author

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.