Layer-2 (L2) solutions for the Ethereum (ETH) network rose to prominence last year due to the need for scalable networks that offer low-fee transactions. This has led to numerous projects building cross-chain bridges with competing blockchain networks. An altcoin that has benefited from the growth of L2 scaling solutions has started to rally with the announcement of the airdrop. As Kriptokoin.com, we are transferring the details.
There are catalysts for this altcoin project to gain value
Synthetix (SNX), a decentralized finance (DeFi) protocol that enables the creation of synthetic assets, derivatives and futures on the blockchain, L2 scaling It is a project that benefits from the growth of its solutions. Since dropping to $4.44 on April 11, the price of the altcoin project has risen by about 52.6 percent, reaching $6.78 on April 26. Afterwards, it was affected by the downward momentum in the markets and made some corrections.
While the majority of cryptocurrencies in the market are in decline, there are potential catalysts for further appreciation in the SNX price. One of the biggest improvements to the Synthetix protocol was its launch on the L2 network Optimism, along with an airdrop announcement. Recently, Synthetix used its launch in Optimism to get more involved in “Curve Wars” and is currently offering the highest incentive to encourage veCRV voters to vote for the sUSD Curvepool. Synthetix has also partnered with Lyra Finance (LYRA) to offer 12,000 SNX and 50,000 LYRA per week as an additional incentive for veCRV voters.
L2 airdrop season could be a catalyst for SNX
The second reason SNX price has the potential to further appreciate is investors’ anticipation that an airdrop season for L2 protocols could occur. There has been considerable speculation that Optimism and Arbitrum, two of the most popular L2 networks in the crypto ecosystem, will eventually airdrop their protocol tokens to the networks’ early adopters. That speculation became reality after Optimism released the first details of the Optimism Collective, a “large-scale experiment in digital democratic governance” built to enable the rapid and sustainable growth of a decentralized ecosystem. Along with the launch of
Optimism Collective comes the launch of the OP governance token, with 5 percent of the initial supply going to be distributed via airdrop to early adopters. For those who were not able to participate in the first round of airdrops, there is still a chance to actively participate in future airdrops on the network, using protocols like Synthetix. With Synthetix offering futures on Optimism, the protocol can benefit users looking for ways to stay active on the network, which could increase demand for SNX. Adding to the potential to receive an OP airdrop, SNX enthusiasts have been drawn to Optimism with the 81 percent stake rewards currently offered by the protocol. According to data from Dune Analytics, further evidence of Synthetix’s growing popularity can be found in the platform’s Optimism metrics, which have grown steadily over the past month. The number of investors on the protocol has been climbing since it started trading futures in mid-March, with the protocol trading around $1.59 billion in total volume.
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