- Synthetix Network’s total value locked nearly doubled to $428.12 million since the beginning of 2023.
- The derivatives liquidity protocol beat trading platforms in volume and daily active users this week, driving SNX price higher.
- Synthetix's founder listed several conceptual proposals to offer SNX trading incentives and staking rewards.
The founder of Synthetix Network, a decentralized derivatives trading platform, submitted a set of conceptual proposals that are likely to benefit SNX holders and community members in the long term.
SNX witnessed a massive spike in Total Value Locked (TVL) and on-chain metrics (volume and daily active users) compared to other decentralized protocols.
Also read: Elon Musk warns traders against “betting the farm” on his favorite cryptocurrency Dogecoin
Synthetix Network beats competitors in daily active users and trade volume
A crypto expert, Paddy the Pirate (@StPaddyPirate) sourced data from DeFiLlama, Tokenterminal and Artemis.xyz for a Decentralized Exchange (DEX) dashboard. Based on data from the dashboard, volume and daily active users witnessed a significant decrease across the board this week.
Perps DEX dashboard
Synthetix Network (SNX) stood out from its competitors with a spike in its volume, nearly four times that of competitor GMX. Interestingly, the rise in on-chain volume this week acted as a bullish catalyst for SNX, driving SNX price higher.
Currently trading at $2.545, SNX yields nearly 17% gains for holders over the past week. Interestingly, the TVL of the protocol climbed from $246.36 million (on January 1) to $428.12 million (at press time), nearly doubling Year Till Date (YTD).
Synthetix Network TVL YTD
What’s driving SNX price rally
Alongside the spike in on-chain metrics, SNX founder Kane Warwick’s conceptual proposal has acted as a bullish catalyst for the token. Warwick submitted 12 governance proposals to push SNX into the next phase where the community benefits from opportunities in the form of staking yield and trading incentives.
Warwick’s proposals are outlined in a “State of Synthetix” post where the founder suggests a 3:1 split of SNX, followed by a buyback and subsequent burn using the Synthetix Treasury’s fee yield.
Proposals by Kane Warwick
Warwick explains that the proposals are only in the conceptual stage and the founder controls one out of four votes on the council. The post started a discussion within the community, acting as a catalyst for SNX price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.