Synthetix’s native token, SNX, experienced a significant surge early Thursday morning, growing approximately 10% overnight. Currently trading at $2.42 (according to CoinGecko), the token appreciates by 9.3% on the day. Despite this bullish momentum, SNX remains more than 91% below its all-time high recorded in February 2021. The token serves a dual purpose, enabling users to participate in governance by voting on proposals and acting as a staking service.
Originating as one of the early DeFi projects, Synthetix is a decentralized derivatives platform built on Ethereum and Optimism. It facilitates the creation of liquidity pools for tokenized commodities such as gold or oil and introduces innovative twists to popular cryptocurrencies. Nowadays, it also operates as an infrastructure provider, powering trading platforms like Kwenta and Lyra. For example, users staking SNX can offer liquidity to Kwenta and earn fees in return.
This recent price increase follows two critical proposals from the Synthetix community. If passed, Synthetix Improvement Proposals (SIP) 2014 and 2015 would introduce eight new markets for synthetic variants of several well-known cryptocurrencies. Most notable among these is the integration of the immensely popular meme coin Pepecoin (PEPE), which Kwenta has also hinted at listing alongside other tokens mentioned in proposal 2014 including BLUR and the newly-launched L1 token SUI.
So far, both SIPs have received unanimous approval, with final voting concluding in two days. In the broader DeFi market, heavyweight lending and borrowing platform Aave has also enjoyed a substantial rise of 5% over the past 24 hours, followed by an increase of 3.4% for Uniswap’s native token. Meanwhile, Optimism’s native token, which powers the layer-2 solution, rose by about 6% over the same time frame.
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Source: Decrypt
