Synthetix racks up over $1M in daily fees as SNX token value surges 100%

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Layer 2 Scaling Solution Synthetix recently partnered with liquidity provider Curve Finance to create curve sets for synthetic ether (sETH) / ether (ETH), synthetic bitcoin (sBTC) / bitcoin (BTC) and synthetic US dollar (sUSD) / 3CR , allowing investors to cheaply convert synthesizers such as sETH to ETH.

Given the willingness of investors to hold tokens instead of synthesizers, the protocol collected over $ 1.02 million in trading fees – overshadowing the daily performance of Bitcoin (BTC) by five times.

Synthetix, an Ethereum-based decentralized financing protocol (DeFi), has created noise across the crypto ecosystem after witnessing a sudden surge in trading activity and the return of its internal token, SNX, unprecedentedly, during a relentless bear market.

Crypto fees of popular projects. Source: cryptofees.info
As a direct result of the huge trading volume, the SNX token also witnessed a current increase of 105%, raising its value to over $ 3.00, according to data from CoinMarketCap.

Synthetix Price Index (SNX). Source: CoinMarketCap
Sharing his thoughts on development, Synthetix founder Kain Warwick, otherwise known as kain.eth, posted a blog post highlighting the difficulty of the DeFi protocol to absorb Bitcoin volatility if the price falls further:

“This is key to understanding. Synthetix is ​​an over-secured package of stable cryptocurrency coins that CAN implode.”
However, he attributed Synthetix’s recent success to the community’s response to difficult circumstances and its willingness to experiment with new mechanisms to ensure stability.

On May 31, the entrepreneur revealed that SNX tokens contribute 99% of its total liquid portfolio.

On the other hand, metrics on the chain revealed the intent of short-circuiting SNX tokens on a number of exchanges. Napgener from Crypto Twitter revealed that 15 million SNX tokens hold a short position on popular exchanges including Binance, FTX, ByBit and OKX. Although only 20 million SNX tokens exist on the stock exchanges, the discovery indicates an impending rise in prices, which could cause SNX to break the value of $ 10.

The Twitter user also stated that the Celsius network offers 300% annual percentage rate (APR) to users to shorten their SNX funds.

Related: President El Salvador is addressing bitcoin hopi bear market concerns

As bitcoin prices fell below $ 20,000 over the weekend, El Salvador President Nayib Bukele shared optimistic advice on Twitter.

In his tweet, Bukele advised fellow investors to “stop looking at the chart and enjoy life”. He assured investors of the imminent return of Bitcoin, stating that:

“If you have invested in #BTC, your investment is safe and its value will increase significantly after the bear market. Patience is the key. ”

Source: CoinTelegraph

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