The Solana-Serum duo has always shared a unique relationship. Despite the wide gap in their respective valuations, both their prices have more often than not moved in tandem. Over the past few months, SOL and SRM have achieved local peaks and lows together.
They’ve become even more closely-knit of late. Solana managed to climb up on its charts by 1% over the past day, while Serum appreciated by 1.4%. Similarly, on the weekly window, SOL shed 9% of its value and SRM’s red figure too stood around the same number.
On the multi-month frame, both the coins have been trying to recover from their steep downfall. There are a couple of reasons why both the coins have not been able to get back on their legs.
The exchange trade volume on Serum, for starters, is has witnessed a downtrend over the past fortnight. Serum, as such, is a DEX built on the Solana blockchain and the not-so-robust activity going on in its ecosystem has not only rubbed off negatively on SRM but has also managed to impede SOL’s prospects indirectly too.
Serum now commands only 4.3% of the total DEX market share by volume. For context, other prominent DEXes like Uniswap and PancakeSwap control 33.5% and 10.0% of the market share respectively.
Additionally, the total value locked on Solana’s wormhole bridge has dipped by more than 87% over the past week. At press time, the funds locked were merely worth $110k.
In effect, it was ranked last on the charts when compared to its other counterparts like Boba, Optimism, Harmony, Fantom, Polygon, and Avalanche.
When Solana pulled off a colossal 700% rally in the period between August and November, its fundaments remained strong. Notably, during the same period, even Serum was in its higher-highs phase. So now, for these coins to reverse their downtrend, the state of the said fundamentals ought to improve.