Synthetix racks up over $1M in daily fees as the value of the SNX token skyrockets by 100%

Synthetix racks up over $1M in daily fees as the value of the SNX token skyrockets by 100%

Layer-2 scaling solution Synthetix recently teamed up with Curve Finance to provide Curve pools for sETH/ETH, sBTC/BTC, and sUSD/3CRV, allowing investors to convert synths like sETH to Ether at a minimal cost. The network collected over $1.02 million in trading fees thanks to investors' desire to hold tokens instead of synths, outperforming Bitcoin's (BTC) daily return by five times.

Synthetix, Ethereum-based decentralized finance (DeFi) technology, has sparked interest in the crypto community after experiencing a surge in trading activity and an extraordinary recovery of its in-house token, SNX, amid a brutal bear market.

The SNX coin, too, had a 105 percent spike as a result of the large trading volumes, raising its value to almost $3, according to CoinGabbar statistics.

Synthetix founder Kain Warwick a.k.a kain.eth wrote a blog post about the development, highlighting the challenge of DeFi protocols to absorb Bitcoin's volatility if the price dips much further:

“This is crucial to understand: Synthetix is a crypto-backed stablecoin suite that is over-collateralized, and thus has the potential to implode.”

However, he did credit Synthetix's recent success to the community's readiness to experiment with different techniques to give stability in the face of adversity.

The developer announced on May 31 that SNX tokens account for 99 percent of his whole liquid holdings.

On the other hand, on-chain metrics showed plans to short the SNX coin across many exchanges. A Twitter handle revealed that 15 million SNX tokens are currently short on key exchanges including Binance, FTX, ByBit, and OKX. While just 20 million SNX tokens are now available on exchanges, the news suggests that a price increase is on the way, with SNX potentially breaking the $10 mark. The Twitter user also claimed that the Celsius network is paying customers a 300 percent APR for shorting their SNX assets.