Synthetix Surged 30% Despite Ethereum’s Drop From The Yearly Highs

Synthetix surged 30% in the past 24hours while the rest of the market got in the red. BTC dipped below $24,300 to local lows of $21,800 as Ethereum slipped under $600 and XRP ranked to below $0.38. In our altcoin news today, we can see more about the analysis.

The market move resulted in a lot of smaller-cap altcoins fall against the dollar by around double the amount that BTC did. Even decentralized finance coins that were quite resilient saw a strong move to the downside. Against all odds, the Synthetix Network Token gained 30 percent in the past 24hours alone. SNX is the top-performing crypto in the top 100 by market capitalization that outpaced Bitcoin’s increase. The crypto asset’s price action can be seen in the charts that we have below.

$SNX trading 40% higher on Coinbase than Binance lmao pic.twitter.com/X6vt9I3xTA

— Hsaka (@HsakaTrades) December 22, 2020

The massive rally in SNX’s price can be attributed to a huge number of trends so let’s take some of them. Coinbase Pro listed SNX after many years of anticipation and gave the investors that don’t know how to use Uniswap or have no access to other exchanges to trade the coin so now that the investors prefer coins that are lower in price, could have added to buying pressure seen on the exchange and other retail-focused platforms.

The SNX volume shot through the roof over the past few days as Synthetix surged 30% and investors started waking up to the crypto potential. SNX was a coin that underperformed in the Defi space. “Smart Money” addresses as defined by Nansen, was accumulating the coin over the past week. Synthetix’s developers were rolling out a huge number of improvements and a new staking decentralized application was rolled out that improved the user experience. The Shaula release is being rolled out which allows ETH and generic ERC 20 collateral to be added to Synthetix.

About 20 hours from now, we're kicking off the Shaula release. During this time, expected to take up to several hours, SNX and Synth tokens will not be transferrable or exchangeable on-chain. 1/https://t.co/UpZn6rT5E7

— Synthetix ⚔️ (@synthetix_io) December 22, 2020

The buying pressure was strong today that a huge premium developed between the price of the coin on Coinbase and the price of the ETH-based DeFi coin on other exchanges. It hit a point where SNX traded 40% higher on Coinbase than it initially did on Binance. These diversions in price on exchanges like Coinbase, could show that there’s a vast amount of retail support. Coinbase Pro also has liquidity or volume with the pair being the most traded SNX pair in existence. The demand of the DeFi coin was so high that the arbitrage was closed in 20 minutes.