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Layer-2 (L2) options for the Ethereum (ETH) community have grown in prominence during the last yr due to the necessity for scalable networks that supply low-fee transactions and led to quite a few initiatives that constructed cross-chain bridges with competing blockchain networks. 

One challenge that has benefitted from the expansion of the L2 scaling options is Synthetix (SNX), a decentralized finance (DeFi) protocol that permits the creation of artificial property and gives publicity to derivatives and futures buying and selling on the blockchain.

Knowledge from Cointelegraph Markets Pro and TradingView exhibits that since hitting a low of $4.44 on April 11, the value of SNX rallied 52.6% to hit a day by day excessive at $6.78 on April 26 earlier than a widespread market downturn dropped it again right down to $5.90.

SNX/USDT 1-day chart. Supply: TradingView

Whereas the vast majority of the market is down, there are potential catalysts for SNX value to see additional appreciation.

Launch on Optimism

One of many greatest developments for the Synthetix protocol was its launch on Optimism, an L2 community that’s making waves this week, due to an airdrop announcement. SNX staking started on Jan. 16 and because the community grows, speculators are giddy on the prospect of future airdrops and staking incentives.

Most just lately, Synthetix used its launch on Optimism to get extra concerned within the “Curve Wars” and at the moment, it’s providing the best bribe to get veCRV voters to incentivize voting for the sUSD Curve pool.

Synthetix has additionally partnered with Lyra Finance (LYRA) to supply 12,000 SNX and 50,000 LYRA per week as an added incentive for veCRV voters.

L2 airdrop season might be a catalyst for SNX

A second motive the value of SNX has the potential to see additional appreciation is merchants’ expectation that an airdrop season for L2 protocols may happen.

There was a major quantity of hypothesis that Optimism and Arbitrum, two of the most well-liked L2 networks within the crypto ecosystem, would finally airdrop their protocol tokens to early adopters of the networks.

This hypothesis grew to become actuality after Optimism released the preliminary particulars of the Optimism Collective, a “large-scale experiment in digital democratic governance” that’s “constructed to drive speedy and sustainable development of a decentralized ecosystem.”

Together with the launch of the Optimism Collective comes the launch of the OP governance token, of which 5% of the preliminary provide can be airdropped to early adopters. For individuals who didn’t qualify for the primary airdrop spherical, there may be nonetheless an opportunity to qualify for future airdrops by being energetic on the community utilizing protocols like Synthetix.

With Synthetix providing futures buying and selling on Optimism, the protocol may benefit from customers in search of methods to be energetic on the community and this might improve demand for SNX.

On prime of the potential to obtain an OP airdrop, SNX holers have additionally been lured to Optimism by the 81% staking rewards at the moment being provided by the protocol.

Associated: Optimism-based projects spike on rumors of token airdrop

Climbing consumer base and quantity transacted

Additional proof of the rising recognition of Synthetix may be discovered within the platform’s metrics on Optimism, which have been steadily rising for the previous month, according to information from Dune Analytics.

Synthetix protocol metrics. Supply: Dune Analytics

As proven within the graphic above, the variety of distinctive merchants on the protocol has been climbing since launching futures buying and selling in mid-March and the protocol has dealt with almost $1.59 billion in complete quantity.

VORTECS™ information from Cointelegraph Markets Pro started to detect a bullish outlook for SNX on April 23, previous to the current value rise.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market situations derived from a mixture of information factors together with market sentiment, buying and selling quantity, current value actions and Twitter exercise.

VORTECS™ Rating (inexperienced) vs. SNX value. Supply: Cointelegraph Markets Professional

As seen within the chart above, the VORTECS™ Rating for SNX climbed into the inexperienced zone and hit a excessive of 77 on April 23, round 39 hours earlier than the value spiked 28% over the following day.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it’s best to conduct your personal analysis when making a call.