Synthetix (SNX) up 13% to Lead DeFi Push, What is Driving Growth?

Synthetix (SNX) is seeing a massive growth push today after soaring by 13.06% in the past 24 hours, according to data from CoinMarketCap. Trading at a price of $2.40, the token has now inched to 31.1% growth over the trailing seven-day period, showing itself as one of the top-performing Decentralized Finance (DeFi) tokens around.

Synthetix said it is building a decentralized liquidity provisioning protocol that any protocol can tap into for various purposes. Built on both the Optimism and Ethereum mainnet, Synthetix has seen the proliferation of protocols on itself, offering users options and futures trading among many other use cases.

The growth of the protocol’s native token, SNX, is currently being fueled by broad optimism about the growing usability of the platform. According to a recent update from The DeFiant, a major DeFi update platform, the number of Daily Active Users (DAUs) on the Synthetix protocol soared to a new high since it launched its V2 engine.

Daily active users hit an all-time high on @synthetix_io

Since launching V2 of its perpetuals platform on @optimismFND in December, Synthetix has seen daily active users more than double from 2.3K to 5.8K. pic.twitter.com/O27GJitQ9l

— The Defiant (@DefiantNews) January 19, 2023

In what appears to be a targeted growth push, Synthetix seems to be benefitting from its two-chain model as Optimism generally complements what Ethereum offers to the protocol’s users.

Corresponding effect on TVL

The growing price valuation of Synthetix as well as its soaring user count has been shown to have a corresponding effect on the protocol’s Total Value Locked (TVL). According to data from DeFiLlama, the TVL on both the Ethereum and Optimism chains has grown from the start of the year to where it is at the moment.

The Ethereum TVL grew from $164.13 million to $237.4 million as of Jan. 19, while that of Optimism grew from $82.23 million to $108.87 million. While this growth may seem uniform across all DeFi protocols, the growth for Synthetix has been relatively steady, and this has notably influenced its recent price surge.