- Synthetix launched an incentives program that could help the network’s declining volume and fees.
- SNX’s price action turned bullish and metrics supported the price surge.
Data from analytics platform Dune revealed that Synthetix [SNX] Perps’ daily fees were on a declining trend since March 2023. The same case was also mapped on Perps’ daily volume chart, which reflected less usage of the network.
Read Synthetix’s [SNX] Price Prediction 2023-24
What could garner user interest?
However, Synthetix made an interesting announcement on 18 April that has the potential to change the scenario in its favor. The network launched the Synthetix Perps Optimism Trading Incentives program, which is based on SIP-2003.
For starters, SIP-2003 is a non-binding vote by the Spartan Council to signal support for Treasury Council in distributing the remaining OP held.
1/6 📢 Synthetix Optimism Trading Incentives will be live tomorrow! 🎉
Those using Synthetix Perps integrators can now earn their pro-rata share of 200,000 $OP per week for 17 weeks.
Learn more in this thread or this blog post 👇🧵https://t.co/qFF3Iqe6te
— Synthetix ⚔️ (@synthetix_io) April 17, 2023
The Synthetix Perps Optimism Trading Incentive Program is aimed at encouraging activity on Optimism and increasing liquidity for Synthetix Perps.
As per the official announcement, up to 300,000 OP tokens will be awarded weekly to traders of Synthetix Perps across any integration partners starting 19 April.
The rewards will be distributed over 20 weeks, with a ramp-up of three weeks. About 50,000 tokens will be distributed in the first week, while 100,000 and 200,000 will be distributed during weeks 2-3, and weeks 4-20, respectively.
Considering the benefits of the rewards, Synthetix network usage might see an improvement in the coming days. This could also help improve Synthetix’s on-chain performance. Let’s not forget, its daily active users were on a decline.
Synthetix enjoying the bulls’ blessings
Interestingly, after Synthetix made the announcement, the network’s native token’s price action turned pretty bullish.
As per CoinMarketCap, in the last 24 hours alone, SNX’s price went up by more than 7%. At the time of writing, it was trading at $3.01 with a market capitalization of over $777 million.
Is the uptrend legit?
A closer look at SNX’s on-chain metrics provided a better understanding of the ground scenario. The price hike was accompanied by a surge in trading volume, which provided a foundation for the uptick.
Positive sentiment around SNX also spiked at the same time, suggesting that investors were confident in the token.
Realistic or not, here’s SNX’s market cap in BTC terms
Additionally, SNX’s Binance funding rate was high, at press time, which reflected its increasing demand in the futures market.
Nonetheless, CryptoQuant’s data revealed a concerning factor. SNX’s exchange reserve was increasing of late. This implied a higher selling pressure, which could cause the bull rally to halt in the near future.