Synthetix racks up over $1M in daily fees as SNX token value surges 100%
Layer-2 scaling solution Synthetix recently collaborated with liquidity provider Curve Finance to create Curve pools for sETH/ETH, sBTC/BTC, & sUSD/3CRV, allowing investors to cheaply convert synths such as sETH to Ether (ETH).
Given the investors’ willingness to hold tokens instead of synths, the protocol racked up over $1.02 million in trading fees — overshadowing Bitcoin’s (BTC) daily performance by five times.
Synthetix, Ethereum-based decentralized finance (DeFi) protocol, created a buzz across the crypto ecosystem after witnessing a sudden increase in trading activities and an unprecedented comeback of its in-house token, SNX, during an unforgiving bear market.
As a direct result of the massive trading volumes, the SNX token, too, witnessed a momentary surge of 105%, bringing up its value to over $3 based on data from CoinMarketCap.
Sharing his thoughts on the development, Synthetix founder Kain Warwick a.k.a kain.eth released a blog post that highlighted the difficulty of DeFi protocols to absorb Bitcoin’s volatility if the price drops even further:
However, he attributed Synthetix’s recent success to the responsiveness of the community to difficult circumstances and a willingness to experiment with novel mechanisms to provide stability.
On May 31, the entrepreneur revealed that SNX tokens contribute to 99% of his overall liquid portfolio.
As of this morning my liquid crypto portfolio is 99% SNX.
On the flipside, on-chain metrics revealed the intentions of shorting the SNX token across numerous exchanges. @napgener from Crypto Twitter disclosed that 15 million SNX tokens maintain a short position on popular exchanges including Binance, FTX, ByBit and OKX. While only 20 million SNX tokens exist on exchanges, the
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