Synthetix plunged in volume during July due to a significant decline in trading activity across centralized and decentralized exchanges (DEX).
Synthetix was one of the best-performing DEXs in July and recorded a trading volume of approximately $2.5 billion, per Be[In]Crypto research based on data from Dune Analytics.
While this value may seem high, it was below the volume of the largest DEX Uniswap and Curve and was a 26% decrease from June ($3.4 billion).
Synthetix joined DEXs such as Balancer and Curve by increasing year-over-year in July. The latest statistic was a 54% increase in the $1.6 billion volume recorded in July 2021.
What is Synthetix?
Launched in September 2017, Synthetix is a decentralized finance (DeFi) protocol that provides on-chain exposure to a wide variety of crypto and non-crypto assets.
Housed in the Ethereum ecosystem, Synthetix offers users access to highly liquidity synthetic assets.
As a high-volume DEX, it records billions of dollars in monthly trading volume.
Synthetix has a native asset called SNX and has more than $300 million in total value locked, according to data from DeFiLlama.
What caused the decline in volume?
An overall bearish market that deepened in May and extended into July has been credited for the drop in volume.
Synthetix, like other decentralized exchanges, supports several low-cap digital assets which see relatively lower trading volumes.
As a result, the negative sentiment that saw millions of traders and investors turn away from crypto for less volatile assets led to a tumble in volume.
SNX price reaction
SNX opened on July 1 at a trading price of $2.28. It reached a monthly high of $4.39, tested a monthly low of $2.17, and closed the month at $3.57.
Overall, regardless of a volume decline, there was a 56% increase between the opening and closing price of SNX in July.
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