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Synapse, the interoperability protocol and cross-chain bridge, has seen its native token soar after Binance Futures news.
On Aug. 16, the price of Synapse (SYN) surged to over $0.57 after gaining more than 40% in 24 hours. Daily trading volume increased by 203% to over $68 million, while market capitalization hovered around $107 million following the 40% spike at the time of writing.
Binance Futures adds SYN
The gains for the inter-blockchain compatibility project came after a major listing announcement by leading crypto exchange Binance.
Futures trading allows traders to buy or sell the underlying asset — whether it be a commodity, security, or other assets — at a set price in the future. It’s a contract that lets crypto holders speculate on the future price of the asset, whether it will rise or fall. Buyers or sellers are obligated to transact the asset at the agreed price, with the losing bet essentially compensating the winning side.
Buyers or sellers will have to buy or sell the said asset at the given price – with the bet that loses essentially paying the one that gets the future price right.
According to Binance, the launch of the SYNUSDT Perpetual Contract expands trading options for its users. The Synapse futures trading on Binance went live on Aug. 16 at 12:30 pm UTC, offering up to 50x leverage. Settlement for the contract will be in USDT.
#Binance Futures will launch the USDⓈ-Margined $SYN Perpetual Contract at
— Binance Futures (@BinanceFutures) August 16, 2024
🗓️ August 16, 12:30 (UTC)
Read more ➡️ https://t.co/lyMESCqPw6 pic.twitter.com/DFAZfDfDVG
Why else did SYN price rise?
According to Sigil Fund partner Joe HedgeHog, SYN’s price is also surging amid community anticipation surrounding the upcoming Synapse chain and Interchain network launch expected this August.
Additionally, an address recently accumulated over $1 million worth of SYN, likely contributing to the upward pressure on the token.
While there’s no specific major news directly related to the Synapse network, traders appear optimistic about the project’s increased visibility and forthcoming milestones.
The key price target for SYN remains its all-time high of $4.92, reached in October 2021.