Analyst highlights reasons why Synthetix (SNX) soared by more than 100%

The cryptocurrency market is showing signs of a small respite amidst the bloodbath. And one of the highlights of this recovery is Synthetix (SNX), which emerged as the main asset in the market recovery

SNX is the governance token for the Synthetix Layer 2 Scaling Solution. On this new high, the token attempted to reclaim the previous local top formed around the $3 resistance area.

The digital asset briefly witnessed a triple-digit increase of more than 100% in the last 24 hours, rising to $3.4 before returning to around $2.6.

Furthermore, SNX’s turnover soared by an astonishing 1,200%. This massive return in turnover, in turn, spurred SNX’s rally.

Subsequently, Synthetix became the third largest protocol responsible for trading fees, just behind Uniswap and Ethereum.

Synthetic

Synthetix was one of the first projects to be launched on the Ethereum (ETH) network. The native token received a boost after Synthetix collaborated with liquidity provider Curve Finance.

The objective is to develop pools for Synthetic Ether (sETH)/Ether (ETH), Synthetic Bitcoin (sBTC)/Bitcoin (BTC).

This allows investors to convert synthetic assets such as sETH into ETH. The introduction of the atomic exchange function with the SIP-120 proposal is one of the catalysts driving the rise, according to analyst Chayanika Deka’s position.

“An integration with 1inch is also underway”, highlighted the analyst.

According to Deka, this will help users to carry out large-scale trades between different asset classes.

“Synthetix’s atomic swaps with SIP-198 have proven to be extremely useful,” she pointed out.

Furthermore, Deka pointed out that this provided the necessary advantage for the ecosystem’s main token jump.

The main focus of the SIP-198 is to enhance the user experience. Therefore, the updated atomic swaps allowed users to execute large swaps in a single transaction.

Since the update, the protocol has watched its trading volume explode. He went from a steady average above the $100 million mark to $396 million over the weekend.

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