The native token of the cross-chain Synapse Protocol, Synapse (SYN), is currently trading at a five-month high of $1.22. This follows a significant increase of 44.74% over the past 24 hours.
Synapse (SYN) is the native token of the Synapse cross-chain protocol. It is a cryptocurrency that is used within the Synapse protocol ecosystem to carry out transactions and access different services on the platform. The purpose of Synapse is to allow the transfer of assets between different blockchains in a safe and efficient way. The popularity of Synapse and its bridge has been a key factor in increasing its value and performance compared to other tokens in the decentralized finance (DeFi) sector.
Outperformance in DeFi
Compared to other players in the decentralized finance (DeFi) sector, Synapse has been outpacing its competitors, rising 151.56% since the start of the year, as compared to the sector’s average increase of 58.27%.
Popularity of the Synapse Bridge
One of the main factors contributing to Synapse’s success is the popularity of the Synapse bridge. This bridge allows users to transfer assets across multiple blockchains and has facilitated $11.45 billion in transfers since its launch.
Increased Use of Cross-Chain Bridges
With astute traders looking to secure the highest borrowing yields across different blockchains, cross-chain bridges are becoming more frequently used. This has been evident in the recent surge of volume on the newly launched layer 1 blockchain Canto, with the Synapse bridge facilitating $47 million of cross-chain transactions since January 25th.
Benefits for Synapse Users
Synapse users have been enjoying the benefits of high staking yields through the SYN/ETH pool on Sushiswap, accessible through the Synapse user interface and offering an impressive 106.69% APY.
Security Concerns
However, cross-chain bridges have recently come under attack by hackers. Blockchain security firm Chainalysis estimates that $2 billion has been stolen from these bridges in the first eight months of 2022, including the $625 million Ronin Bridge exploit carried out by North Korean hacking group Lazarus.