Analysts from Messari solved puzzle of dramatic imbalance between Synthetix (SNX) activity metric and price of its token
Thomas Dunleavy, a senior cryptocurrency researcher in a Web3 analytical heavyweight Messari, shared an interesting analysis of performance demonstrated by Synthetix (SNX), one of the blue chip DeFi protocols.
SNX price lagging behind Synthetix (SNX) trading activity
According to a thread shared by Mr. Dunleavy, the net revenue of the Synthetix (SNX) decentralized finance (DeFi) platform spiked by 700% in two months.
GM. Get that ☕️ going and wake up to this OG you’ve been sleeping on
SNX daily revs are up ~700% since June. Price? Only up 30%. Still 90% off ATHs.
Wait that rev must not go back to stakeholders right? Nope 100% back to SNX stakers. Inflation? Nada. 2.5% starting next year
— Dunleavy (@dunleavy89) August 26, 2022
This magnificent upsurge should be attributed to the integration of the Synthetix (SNX) atomic swap module by 1inch, another DeFi heavyweight. Atomic swaps allow to exchange cryptocurrencies in a seamless and resource-efficient manner.
With Synthetix (SNX) atomic swaps enabled, zero slippage trade became available for 1inch users. Due to the popularity of this instrument, the aggregated trading volume and revenue of Synthetix (SNX) rocketed.
However, the price of SNX, the core native asset of Synthetix, added only 30% since June, and is still 90% down from the all-time high.
Mr. Dunleavy noticed that such discrepancy might be attributed to the whale-driven character of this upsurge. Synthetix (SNX) is used by “a few hundred traders” monthly, while its average trade size is 40 times larger than that of Uniswap (UNI), a flagship retail DeFi.
Massive announcements coming for Synthetix (SNX) community
The Synthetix (SNX) team is going to implement a number of major updates to bring a new generation of traders to the platform, analyst adds. Namely, Synthetix (SNX) aims at reducing fees, adding more DEXs integration and new markets and improving user experience.
This combination of factors might be a bullish catalyst for the SNX price in mid-term.
Launched by a seasoned Ethereum (ETH) developer Kain Warwick, Synthetix (SNX) is among the flagship protocols of the 2020 DeFi summer.
Together with Aave Finance (AAVE), it was the top performing application of the DeFi euphoria.