Synthetix’s native token SNX got off to a wild start Thursday morning, rising nearly 10% overnight.
It is now trading at $2.42, per CoinGecko, up 9.3% on the day. Despite today’s strong momentum, the token is still down more than 91% from its all-time high set in February 2021.
The token doubles as a governance tool, allowing users to vote on various staking proposals and services.
One of the originalsproject, Synthetix is a decentralized derivatives platform built on and Optimism. It allows users to spin up liquidity pools for tokenized versions of commodities, such as gold or oil, as well as adding novel spins to some of the more popular cryptocurrencies.
These days, it has also become an infrastructure provider, powering pure-play trading platforms like Kwenta and Lyra. Users staking on SNX, for example, provide liquidity for the Account and get paid for doing so.
Today’s price increase comes on the heels of two important proposals from the Synthetix community. The Synthetix Improvement Proposal (SIP) 2014 and 2015, if passed, will open up eight new markets for synthetic versions of several well-known cryptocurrencies.
The most popular market is probably the community interest in integrating the mega-popular meme coin Pepecoin (PEPE).
Also count felt to the listing of PEPE, as well as other tokens mentioned in the proposal 2014 such as the token that activates the NFT marketplace BLUR, as well as the newly launched layer-1 token SUI.
The two SIPs have so far met with unanimous approval, with the vote ending in two days.
Around the DeFi market
After SNX, heavyweight lending and borrowing platformalso enjoyed a massive 5% increase in the last 24 hours, followed by this is a native sign. UNI rose 3.4% overnight.
The native token that powers the fast layer-2 solution Optimism is up 6% over the same period, too.
In particular, Kwenta and Lyra are trading platforms based on Optimism.
To encourage adoption of the Ethereum scaler, Kwenta also offers users additional OP token rewards just for trading on the platform.
As for Ethereum, the second largest cryptocurrency by market capitalization rose by only 1%, hovering around $1,800 at press time.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.