DeFi Altcoin on Ethereum Gains Momentum with Release of Upgrade
The Synthetix Network (SNX), a decentralized finance (DeFi) altcoin project, has experienced a remarkable surge with the eagerly awaited launch of Synthetix V3, an upgrade two years in the making and described as the “liquidity layer for DeFi.”
In the past few days, SNX’s value marking a significant 32% increase. During this rally, blockchain tracking firm Lookonchain observed a crypto whale withdrawing a substantial 3.44 million SNX, valued at $7.72 million, from leading crypto exchange Binance. With the latest developments, SNX founder Kain Warwick shared insights into the project’s future, particularly regarding the challenge of spreading SNX liquidity across various EVM-compatible chains.
While the exact solution remains undetermined. The aim is to create a highly efficient liquidity market, ensuring that demand on any chain is met with sufficient supply. Ultimately making SNX a robust primary collateral token to support required liquidity levels. However, this process may face challenges during bear markets. Necessitating a careful balance between system complexity and compromise.
Clever Robot News Desk 7th September 2023