Enthusiasm soared as the native token of Synapse, an acknowledged DeFi protocol aimed at transferring data across blockchain bridges, bounced back by a surprising 17% from a low of $0.30. This sudden recovery comes in the wake of an unexpected dip of 25% earlier this week, incited by the 9-million SYN token offload of a wallet Synapse identifies as connected to the venture capital firm, Nima Capital.
The Synapse statement pinned this action on one brave liquidity provider who apparently removed their SYN tokens and took away the liquidity. “We’re investigating any irregular activity in their wallets and we’re striving to establish contact”, read the statement, fervidly reassuring the community that no unauthorized incursion on the protocol or bridge had transpired.
Synapse, no stranger to exceptional performance in the crypto world, mounted an impressive 44% rally in a single day in February. A thrilling spike that, according to insiders, could ostensively be due to the general optimism swelling around the potential of cross-chain bridges.
Even more notable, however, are the recent SYN trade volume expansions. Following this week’s dump, we witnessed an unprecedented explosion of trading activity, with recent 24-hour records clocking in at over $25 million, dwarfing last week’s highest total of only $5.9 million.
Despite trading off some minor gains immediately following its comeback, SYN’s popularity amongst traders remained solid. Due to a surge of action on Binance during Asia’s prime trading hours, the price briefly peaked at $0.425 but gradually relaxed at a more sober $0.358. Currently valued at a massive $113 million according to DeFiLlama, Synapse’s total value locked (TVL) certainly isn’t reflective of a protocol on the decline.
While this scenario obviousely incites a mixed reception depending on one’s vested interests, it does underline an inherent volatility in the crypto market. Proponents argue the bounce-back underscores the system’s inbuilt resilience and opportunity for calculated risk; skeptics interpret it as a testament to its unpredictability, and a market best approached with caution and readiness for dramatic fluctuations. Interestingly, the elusive Nima Capital had yet to weigh in, declining comment at the time of publishing.
Source: Coindesk
