Layer-2 (L2) options for the Ethereum (ETH) community have grown in prominence over the past 12 months due to the necessity for scalable networks that provide low-fee transactions and led to quite a few tasks that constructed cross-chain bridges with competing blockchain networks.
One venture that has benefitted from the expansion of the L2 scaling options is Synthetix (SNX), a decentralized finance (DeFi) protocol that permits the creation of artificial belongings and affords publicity to derivatives and futures buying and selling on the blockchain.
Knowledge from Cointelegraph Markets Pro and TradingView exhibits that since hitting a low of $4.44 on April 11, the worth of SNX rallied 52.6% to hit a every day excessive at $6.78 on April 26 earlier than a widespread market downturn dropped it again all the way down to $5.90.
Whereas nearly all of the market is down, there are potential catalysts for SNX worth to see additional appreciation.
Launch on Optimism
One of many greatest developments for the Synthetix protocol was its launch on Optimism, an L2 community that’s making waves this week, because of an airdrop announcement. SNX staking started on Jan. 16 and because the community grows, speculators are giddy on the prospect of future airdrops and staking incentives.
Most just lately, Synthetix used its launch on Optimism to get extra concerned within the “Curve Wars” and at present, it’s providing the very best bribe to get veCRV voters to incentivize voting for the sUSD Curve pool.
Synthetix has additionally partnered with Lyra Finance (LYRA) to supply 12,000 SNX and 50,000 LYRA per week as an added incentive for veCRV voters.
L2 airdrop season may very well be a catalyst for SNX
A second cause the worth of SNX has the potential to see additional appreciation is merchants’ expectation that an airdrop season for L2 protocols might happen.
There was a big quantity of hypothesis that Optimism and Arbitrum, two of the preferred L2 networks within the crypto ecosystem, would finally airdrop their protocol tokens to early adopters of the networks.
This hypothesis grew to become actuality after Optimism released the preliminary particulars of the Optimism Collective, a “large-scale experiment in digital democratic governance” that’s “constructed to drive fast and sustainable development of a decentralized ecosystem.”
Together with the launch of the Optimism Collective comes the launch of the OP governance token, of which 5% of the preliminary provide will probably be airdropped to early adopters. For many who didn’t qualify for the primary airdrop spherical, there’s nonetheless an opportunity to qualify for future airdrops by being lively on the community utilizing protocols like Synthetix.
With Synthetix providing futures buying and selling on Optimism, the protocol may gain advantage from customers in search of methods to be lively on the community and this might enhance demand for SNX.
On prime of the potential to obtain an OP airdrop, SNX holers have additionally been lured to Optimism by the 81% staking rewards at present being supplied by the protocol.
Climbing consumer base and quantity transacted
Additional proof of the rising recognition of Synthetix might be discovered within the platform’s metrics on Optimism, which have been steadily growing for the previous month, according to knowledge from Dune Analytics.
As proven within the graphic above, the variety of distinctive merchants on the protocol has been climbing since launching futures buying and selling in mid-March and the protocol has dealt with almost $1.59 billion in complete quantity.
VORTECS™ knowledge from Cointelegraph Markets Pro started to detect a bullish outlook for SNX on April 23, previous to the current worth rise.
The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mixture of information factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.
As seen within the chart above, the VORTECS™ Rating for SNX climbed into the inexperienced zone and hit a excessive of 77 on April 23, round 39 hours earlier than the worth spiked 28% over the following day.
The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it is best to conduct your personal analysis when making a call.