The 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 them to allows investors to cheaply convert synths like sETH to ETH.
Given the willingness of investors to hold tokens instead of synths, the protocol racked up over $1.02 million in trading fees, which dwarfed Bitcoin’s (BTC) daily return five times.
Synthetix, the Ethereum-based decentralized finance (DeFi) protocol, created a buzz throughout the crypto ecosystem after witnessing a surge in trading activities and an unprecedented comeback for its in-house token, SNX.during a relentless bear market.
As a direct result of massive trading volumes, the SNX token also witnessed a momentary increase of 105%, raising its value to over $3.00according to data from CoinMarketCap.
Sharing your opinion on development, Synthetix founder Kain Warwick, aka kain.eth, posted a blog post highlighting how difficult it is for DeFi protocols to absorb bitcoin volatility if the price falls further:
“This is critical to understand: Synthetix is a pool of overcollateralized cryptocurrencies, so it may implode.”
Nevertheless, attributed the recent success of Synthetix to the community’s responsiveness to difficult circumstances and a willingness to experiment with novel mechanisms to provide stability.
May 31, entrepreneur revealed that SNX tokens contribute to 99% of his overall liquid wallet.
As of this morning, my liquid cryptocurrency wallet is 99% made up of SNX.
— kain.eth (✨_✨) (@kaiynne) May 31, 2022
On the opposite side, on-chain metrics revealed intentions to short SNX token across numerous exchanges. Twitter’s Napgener revealed that 15 million SNX tokens are shorted on popular exchanges including Binance, FTX, ByBit, and OKX. Although there are only 20 million SNX tokens on exchanges, the revelation points to an upcoming price spike, which could see SNX exceed a value of $10..
15 m $snx is short now.
only 20m exist on exchanges
this thing could powder keg to $10+$sirin / $unfi style pic.twitter.com/b0LM8zs5x5— napgener 0xDONE (@napgener) June 20, 2022
USD 15 million of SNX is short.
There are only 20 million on exchanges
This could be a powder keg of more than USD in the style of the European Union currency pic.twitter.com/b0LM8zs5x5
The Twitter user also claimed that the Celsius network is offering a 300% annual percentage rate (APR) to users for shorting their SNX holdings.
When bitcoin prices dipped below $20,000 over the weekend, the president of El Salvador, Nayib Bukele, shared an optimistic advice on Twitter.
I see that some people are worried or anxious about the #bitcoin market price.
My advice: stop looking at the graph and enjoy life. If you invest in #BTC your investment is safe and its value will grow immensely after the bear market.
Patience is the key.
– Nayib Bukele (@nayibbukele) June 19, 2022
I see that some people are concerned or anxious about the market price of bitcoin. My advice is this: stop looking at the chart and enjoy life. If you have invested in BTC, your investment is safe and its value will grow immensely after the bear market. patience is the key
In his tweet, Bukele advised his fellow investors to “stop looking at the chart and enjoy life.” He reassured investors about bitcoin’s inevitable comebackstating that:
“If you invested in BTC, your investment is safe and its value will grow immensely after the bear market. Patience is the key.”
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