Layer-2 (L2) solutions for the Ethereum (ETH) network have grown in prominence over the last year because of the need for scalable networks that offer low-fee transactions and led to numerous projects that built cross-chain bridges with competing blockchain networks.
One project that has benefitted from the growth of the L2 scaling solutions is Synthetix (SNX), a decentralized finance (DeFi) protocol that enables the creation of synthetic assets and offers exposure to derivatives and futures trading on the blockchain.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $4.44 on April 11, the price of SNX rallied 52.6% to hit a daily high at $6.78 on April 26 before a widespread market downturn dropped it back down to $5.90.
While the majority of the market is down, there are potential catalysts for SNX price to see further appreciation.
Launch on Optimism
One of the biggest developments for the Synthetix protocol was its launch on Optimism, an L2 network that is making waves this week, thanks to an airdrop announcement. SNX staking began on Jan. 16 and as the network grows, speculators are giddy at the prospect of future airdrops and staking incentives.
Most recently, Synthetix used its launch on Optimism to get more involved in the “Curve Wars” and currently, it is offering the highest bribe to get veCRV voters to incentivize voting for the sUSD Curve pool.
Synthetix has also partnered with Lyra Finance (LYRA) to offer 12,000 SNX and 50,000 LYRA per week as an added incentive for veCRV voters….