• 24 June, 2024
Market News

Synthetix Debuts Perpetuals Protocol on Base, Aims to Revitalize SNX Prices

Synthetix, a decentralized cryptocurrency derivatives marketplace, has recently made a significant move by launching its first perpetuals protocol on Coinbase’s Ethereum Layer 2 (L2) solution, the Base blockchain. This development marks a pivotal moment for Synthetix, as it is the inaugural perpetuals protocol on Base and the third iteration (V3) in its series.

Introducing this protocol on the Base blockchain is poised to open doors for the millions of users on Coinbase, potentially leading to an upsurge in trading volumes for Synthetix perpetuals across the Ethereum ecosystem. This strategic decision could be a critical factor in bolstering the market position of Synthetix, especially considering the robust performance of its predecessor, perpetuals V2. Launched in January 2023, perpetuals V2 has already amassed over $43 billion in trading volume, drawing in tens of thousands of new traders and users.

Synthetix has further announced plans to expand its V3 products on the Base platform, with a new perpetual futures exchange named Infinex in development. Kain Warwick, the founder of Synthetix, has emphasized the importance of leveraging decentralized technology in crypto transactions to compete effectively with centralized platforms. Perpetuals V3 is expected to facilitate the development of new derivative products on Synthetix for developers utilizing the base chain, which could significantly enhance the ecosystem’s capabilities.

Synthetix’s price has notably declined, dropping 35% from its peak of $4.95 on December 12. However, the announcement of perpetuals V3 has sparked a turning point, with the Synthetix price currently at $3.16. This improvement, coupled with a 24-hour trading volume of $25,867,289, suggests a renewed investor interest, potentially leading to further price increases. If this buying pressure continues, Synthetix’s price could surpass the resistance near $3.00 and approach the 100-day Simple Moving Average (SMA) at $3.28.

Today, Synthetix holds the 62nd rank on CoinMarketCap, boasting a live market cap of $962,663,666. The circulating supply of SNX coins stands at 304,391,551, with a maximum supply yet to be determined. This strategic move by Synthetix, launching its innovative perpetuals protocol on the Base blockchain, signifies a bold step in enhancing decentralized crypto trading and could catalyze SNX’s market recovery and growth.

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