This might not necessarily be a positive dev for SRM’s price. In the past, whenever this metric has peaked, the underlying token’s price has registered local lows and vice versa.
However, it is interesting to note that when Serum’s NVT ratio peaked in June last year, SRM’s price was at its local lows. Right after that, it did recover slightly but returned back to the same low level in a month’s time. After doing so only, the asset’s price commenced its sustainable uptrend.
Well, quite a similar behavior pattern has been observed with other tokens like Ethereum in the past. For instance, back in 2020 when the largest Altcoin’s network reached its high, ETH’s price rose slightly and then consolidated in the same range for a period of 6-weeks. Only after that did it go on to clinch new highs.
Thus, something similar [a dead-cat bounce followed by consolidation and then an uptrend] can be expected to play out for Serum this time around as well. In effect, large Ethereum whales might be accumulating this token from a long-term perspective.