The native token of the Synthetix decentralized finance (DeFi) platform is up more than 100% this week after falling below $18,000 over the weekend to trade at SNX.
SNX has proven to be the biggest gainer on Monday. The coin’s 24-hour trading volume rose more than 1,200% to $322 million, according to CoinMarketCap.
This shows that despite the poor performance last week, investors are still pouring money into the coin because it has been tendered. Furthermore, this sudden growth of SNX is supported by the increase in daily network volume brought about by its new features.
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Synthetix is a layer 2 scaling solution that provides on-chain exposure to a variety of crypto and non-crypto assets. It recently partnered with liquidity provider Curve Finance to create curve pools for sETH/ETH, sUSD/3CRV, and sBTC/BTC, allowing investors to convert compounds like sETH into ether (ETH) at a more affordable price.
Synthetix token halved in 7 days
At the time of writing, the Synthetix token is selling for $3.05, up 50% over the past week. The latest price hike has helped the coin wipe out the deficit from the ongoing market crash.
SNX’s price increase is not only due to bullish views on Bitcoin at the beginning of the week, but also to investors’ desire to hold the token rather than the synth and the protocol’s ability to generate over $1 million in transaction fees, more than five times the Exceeds BTC’s daily performance.
Synthetic assets are created when token holders stake their SNX as collateral using Mintr, a decentralized platform for participating in Synthetix contracts. Currently, the protocol supports synthetic fiat currencies, cryptocurrencies, and commodities.
SNX ranks 87th globally
The Synthetix token is trading just above its 52-week low. Any drop in the price of Bitcoin could lead to a drop in the price of SNX.
Out of nearly 20,000 cryptocurrencies, SNX Crypto ranks 87th. The SNX cryptocurrency can be traded on cryptocurrency exchanges such as Binance and Uniswap.
The cryptocurrency market is showing signs of recovery, with its valuation rising 8.5% from the previous day to $879 billion. However, it is important to recognize that the entire crypto market is going through a moment of great instability.
Featured image from Cryptona, chart from TradingView.com