DeFi Protocol Synthetix, Counting the Days Till L2 Release

Synthetix (SNX/USD) has suffered a disastrous fall from its highs of $28.53 in February, to $12.15 at the time of writing.

SNX was on a wild roller coaster ride between November 2020 and February 2021, when there was an incredible rise from $2.73 to a whopping $27.53. The price slowly fell from this year’s low at $5.60, then bounced back to $12.15. It currently holds the #51 spot on the list of the biggest cryptos, based on market cap.

Synthetix is a popular Decentralized Finance (DeFi) project that is classified as DEX, which is a peer-to-peer (P2P) marketplace that links cryptocurrency buyers and sellers. This liquidity protocol runs on the Ethereum network. It helps users to trade, stake or borrow all types of synthetic derivatives, including commodities, stocks, and fiat currencies. They do this by developing synthetic assets, or Synths, that are linked to the price of these real-life financial resources. This protocol can provide an immovable record of trading data for real-world investments, using an impartial system.

Synthetix will soon be releasing Optimism, a Layer 2 solution update for Ethereum. Layer 2 will make Synthetix more practical for merchants, considerably reducing the transaction fees, which is a big factor since it runs on Ethereum. It will be enabled as of July 26, and the final implementation date will support the initial Synths, such as sETH, sLINK and sBTC. This will have a positive impact on the SNX price, and it is an encouraging sign that the asset will hold above $5.60 once the update goes through.