Wednesday, November 29, 2023

Synthetix Racked Up $1M In Daily Fees As SNX Token Surges 100%

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Synthetix racked up $1 million in daily fees while the SNX token surged by 100% and collaborated with Curve Finance to create pools for sETH/ETH and sBTC/BTC allowing investors to convert synths into the token so let’s read more today in our latest altcoin news.

The layer-2 scaling solution Synthetix collaborated with the liquidity provider Curve Finance to create Curve pools for sBTC/BTC, sETH,ETH, sUSD/3CRV which will allow investors to convert synths to ether. Given the willingness of investors to hold tokens instead of synths, the protocol racked up $1.02 million in trading fees and surpassed Bitcoin’s daily performance by five times. The Ethereum-based DEFI protocol Synthetix racked up $1M in daily fees and created a buzz on the crypto market after witnessing a sudden increase in trading activity and the SNX token floating around the bear market.

As a direct result of the trading volumes, the SNX token witnessed a momentary surge of 105% which brought up its value to over $3 based on the data from CoinMarketCap. The Synthetix founder Kain Warwick released a blog post outlining the difficulty of DEFI protocols to absorb the BTC volatility if the price continues dropping:

“This is critical to understand, Synthetix is an over-collateralized crypto-backed suite of stablecoins, it CAN implode.”

He attributed Synthetix’s recent success to the community’s responses to difficult circumstances and the will to experiment with mechanisms to provide stability. The entrepreneur revealed that the SNX tokens contribute to 99% of the overall liquid portfolio. On the flip side, the on-chain metrics show the intention of shorting the SNX token on multiple exchanges. Crypto Twitter user disclosed that 16 million SNX tokens maintained a short position on exchanges like FTX, ByBit, Binance, and OKX while 20 million tokens exist on exchanges that could also see SNX breach a value of $10.

The Twitter user alleged that the Celsius network is offering a 300% annual percentage rate to the users to short their SNX holdings.

As recently reported, Synthetix adds three major platforms and rather surprising ones to its governance and also announced a $12 million dollar fundraising that is led by venture capital companies that purchased SNX tokens from the DAO treasury directly and will also contribute where it is possible by providing liquidity in the form of the SNX collateral and to also participate in the evolving community governance system as per the announcement.

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