• Synthetix’s [SNX] trading volumes and fees have increased significantly in the past few weeks. However, Total Value Locked (TVL) has remained stagnant.
• The network successfully deployed its v3 on Ethereum and Optimism, which could result in further increases in trading volume.
• Positive metrics such as DyDx funding rate, positive sentiment, and exchange outflows suggest SNX is well-positioned for further growth in the coming days.
Synthetix Trading Volume Increases
Synthetix’s trading volume went up considerably in the last few weeks. Token Terminal revealed that SNX’s trading volume registered a considerable uptick over the last few weeks, spiking during the second week of February when its price also pumped, reflecting strong investors‘ enthusiasm for SNX.
V3 Deployment
Recently, Syhthetix successfully deployed its v3 on Ethereum and Optimism, which can result in a further increase in trading volume in the coming days. As per the official announcement, cross-chain functionality and scaling will become a focus of the core contributors in future upgrades of the V3 core system.
Revenue Increase But DeFi Growth Stagnant
Fees and revenue also increased but TVL plateaued. Recently, DeFiLlama’s data revealed that Synthetix network’s fees also went up along with an increase in revenue; however, its DeFi ecosystem seemed to have remained stagnant with Total Value Locked (TVL) not showing much change over the past few weeks.
On-Chain Performance
Santiment’s chart revealed that SNX’s metrics were positive and supported the network’s further growth in the coming days. For instance, SNX’s DyDx funding rate remained consistently high while positive sentiments around SNX also spiked – reflecting investors‘ confidence – as well as an increasing exchange outflow over recent days.