Synthetix (SNX) price surges 73%: here’s why SNX is defying the current bear market

Synthetix (SNX) price started the week by registering a rise of over 105% and hitting a daily high of $3.18. The sudden price spike came as a surprise especially since the general crypto market has been experiencing large price drops over the past few weeks.

Bitcoin, for example, slid to $19,000 over the weekend as Ethereum struggled to remain above $1,000. While the two largest cryptocurrencies (Ethereum and Bitcoin) have made slight upward price movements today, they are still way below their all-time highs.

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While the global crypto market cap has risen by about 7.36% today, it is still well below the $1 trillion mark. The overall crypto market cap stands at $904.16 billion.

Interestingly, Synthetix’s price started rising on Sartuday (June 18), a time when most of the major cryptocurrencies were dropping.

Below are the reasons why Synthetix (SNX) price is surging.

Reasons why Synthetix (SNX) price is rising

There has been a sudden increase in trading activities on Synthetix, an Ethereum-based decentralized finance (DeFi) protocol. This has created a buzz across the crypto ecosystem; something that has resulted in the unprecedented comeback of the SNX token during an unforgiving bear market.

The increase in trading activities on Synthetix is largely attributed to its recent collaboration with liquidity provider Curve Finance to create Curve pools for sBTC/BTC, sETH/ETH, and sUSD/3CRV to allow investors to cheaply convert synths.

Interestingly, following investors’ willingness to hold tokens instead of synths, Synthetix has collected over $1.02 million in trading fees; overriding bitcoin’s daily performance by over five times.

Synthetix founder Kain Warwick, also recently released a blog highlighting the difficulty of DeFi protocols in absorbing bitcoin’s volatility especially if its price drops further. In the blog post, Kain attributed Synthetix’s success to the “responsiveness of the community to difficult circumstances and their willingness to experiment with novel mechanisms to provide stability.”