Here’s Why Synthetix (SNX) Price Skyrocketed By 100%

The native token of Synthetix Network, SNX has turned out to be the day’s biggest gainer. The Synthetix token’s price has jumped by a whopping 100% in the last 24 hours. This sudden surge is baked by the increased network daily volume due to its new provided feature.

SNX 24 hr trading vol up by 1200%

Synthetix, a derivative liquidity protocol provider, in a series of threads mentioned that their “Atomic Swaps” feature is the key. The platform has been recording more than $200 million in daily volume. It added that swaps on 1inch and Curver finance protocols average around $100 million each in daily volume.

According to CoinMarketCap, the SNX token’s 24 hour trading volume has skyrocketed by over 1200% to stand at $322 million. The Synthetix token is trading at an average price of $3.04, at the press time. The recent price jump has helped the token clear its past deficit caused by the market crash. SNX’s price is up by 50% in the last 7 days.

The SNX team worked with Curve Finance closely to make Curve pools for ssETH/ETH, sBTC/BTC and sUSD/2CRV. This helped the network to provide derivatives tokens. Meanwhile, Synthetix’s atomic exchange checks the live price on Uniswap and then compares it with the Chainlink. This is done in order to make sure that the current price shouldn’t be lagging. However, Synthetix added that integration with the 1inch has been driving a lot of volume to them lately.

Celsius holds 6.6 million Synthetix tokens

According to Coinglass, the annualized funding rate of SNX has exceeded -200% amid the price surge. This indicates that big shorts might be on the way. An expert cautioned the on chain lenders like Aave protocol, suggesting them to pause the borrowing or use of SNX as collateral. It mentioned that the Celsius Network is holding around 6.6 million of the SNX tokens in its wallet. These tokens can be used to mint sUSD or borrow funds in the coming time.