Layer 2 Scaling Solution Synthetix recently collaborated 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, allowing investors to convert Synths as cheaply as sETH to ETH.
With investors willing to hold tokens instead of synths, the protocol generated over $1.02 million in trading fees – outstripping Bitcoin (BTC) daily performance by five times.
Synthetix, the Ethereum-based Decentralized Finance (DeFi) protocol, created a stir across the cryptocurrency ecosystem after witnessing a sudden increase in trading activity and an unprecedented resurgence of its internal token, SNX, during an unforgiving bear market.
Encoder fees for popular projects. Source: cryptofees.info
As a direct result of the massive trading volumes, the SNX token also saw a temporary 105% rally, taking its value to more than $3.00, according to data from CoinMarketCap.
Synthetix (SNX) Price Index. Source: CoinMarketCap
Sharing his thoughts on development, Synthetix founder Kain Warwick, better known as kain.eth, released a blog post highlighting the difficulty of DeFi protocols to absorb Bitcoin’s volatility if the price drops further:
“This is extremely important to understand, as Synthetix is a stablecoin cryptocurrency backed by collateral, and it can explode from the inside.”
However, he attributed Synthetix’s recent success to the community’s response to challenging conditions and a willingness to experiment with new mechanisms to provide stability.
On May 31, the entrepreneur revealed that SNX tokens contribute to 99% of his total liquid portfolio.
On the other hand, on-chain metrics revealed intentions to sell the SNX token across several exchanges. Crypto Twitter’s Napgener revealed that 15 million SNX tokens are maintaining a short position on popular exchanges including Binance, FTX, ByBit, and OKX. Although there are only 20 million SNX tokens on the exchange, the revelations suggest an upcoming price hike, which could lead to a $10 SNX hack.
The Twitter user also claimed that Celsius Network is offering a 300% annual rate (APR) to users to reduce their SNX holdings.
Related: El Salvador President Addresses Bear Market Concerns Over Bitcoin Hypium
With Bitcoin prices dropping below $20,000 over the weekend, El Salvador President Neb Bukele shared a bullish tip on Twitter.
In his tweet, Bukele advised fellow investors to “stop looking at the chart and enjoy life.” He reassured investors about Bitcoin’s inevitable comeback, saying:
“If you invest in #BTC, your investment is safe and its value will grow exponentially after the bear market. Patience is key.”