L2 Scaling Solution Synthetix has partnered with Curve Finance to create Curve pools for sETH/ETH, sBTC/BTC and sUSD/3CRV, allowing investors to tokenize synths.
Tier 2 Scaling Solution Synthetix recently partnered with liquidity provider Curve Finance to create Curve pools for Synthetic Ether (sETH)/Ether (ETH), Synthetic Bitcoin (sBTC)/Bitcoin (BTC), and Synthetic US Dollar (sUSD)/3CRV to create investors to cheaply convert synths like sETH to ETH.
Given the willingness of investors to hold tokens instead of synthesizers, the protocol generated over $1.02 million in trading fees, five times the daily output of bitcoin (BTC).
Synthetix, an Ethereum-based decentralized finance (DeFi) protocol, has caused a stir in the crypto ecosystem after seeing a sudden spike in trading activity and an unprecedented return of its native SNX token during an unrelenting bear market.
Cryptocurrency fees of popular projects. Source: cryptofees.info
As a direct result of the huge trading volume, the SNX token also experienced a temporary surge of 105%, bringing its value to over $3, according to data from CoinMarketCap.
Synthetix Price Index (SNX). Source: CoinMarketCap
Synthetix founder Kane Warwick, also known as kain.eth, shared his thoughts on the development and published a blog post highlighting that DeFi protocols are having a hard time absorbing bitcoin’s volatility if the price falls further:
“It’s important to understand that Synthetix is a set of over-collateralized stablecoins in cryptocurrency, it CAN explode.”
However, he attributed the recent success of Synthetix to the community’s response to difficult circumstances and a willingness to experiment with new mechanisms to ensure stability.
On May 31, the entrepreneur announced that SNX tokens make up 99% of his total liquid portfolio.
On the other hand, on-chain metrics showed the intention to short the SNX token on numerous exchanges. Crypto Twitter’s Napgener announced that 15 million SNX tokens are short on popular exchanges including Binance, FTX, ByBit and OKX. While there are only 20 million SNX tokens on exchanges, the revelation hints at an imminent price hike that could see the value of SNX exceed $10.
The Twitter user also stated that the Celsius network is offering users a 300% annual interest rate (APR) for the sale of their SNX holdings.
RELATED: El Salvador’s president tackles bear market problems with bitcoin hopium
As bitcoin prices plunged below $20,000 over the weekend, El Salvador’s President Nayib Bukele gave upbeat advice on Twitter.
In a tweet, Bukele advised other investors to “stop looking at the chart and enjoy life.” He reassured investors of the imminent return of Bitcoin, stating:
“If you have invested in #BTC, your investment is safe and will appreciate significantly after the bear market. Patience is the key.”