Synthetix Perps adds Arbitrum [ARB] as SNX sets up a show, more inside

•  Synthetix Governance gave the green light to add Arbitrum [ARB] to Synthetix Perps.
• Metrics looked bullish on SNX and suggested a trend reversal. 

Synthetix [SNX] Perps v2 has been registering quite a few achievements of late. The latest one was its cumulative volume, which reached nearly $2 billion. However, since then, Dune’s data revealed that there has been a decline in daily volume. Not only volume, but the same trend was seen for daily fees, suggesting less usage of the network.

Source: Dune

Read Synthetix’s [SNX] Price Prediction 2023-24

Foundation laid for a revival? 

Nonetheless, things can change soon, as Synthetix made a new announcement that had the potential to attract new users, in turn increasing daily volume. As per the latest tweet, Synthetix Governance has just given the green light to add Arbitrum [ARB] to Synthetix Perps. 

The wait is over. ?$ARB has launched on Synthetix Perps. Check it out now with SNX perps integrators: @Kwenta_io, @PolynomialFi, @DecentrexHQ, @dHedgeOrg, and many more to come.https://t.co/FGF1mUszT6 pic.twitter.com/aufys9LOXJ

— Synthetix ⚔️ (@synthetix_io) March 28, 2023

Thanks to SIP 2010!

The new perpetual futures market has been approved by SIP 2010. This can increase Perps’ volume substantially, considering the hype and popularity of ARB in recent times as it was AirDropped a few days ago. The official announcement mentioned that ARB is a highly anticipated token launch that has drawn considerable attention, and will be attractive to traders.

Expanding on the technicalities of the market, prices will be set by the decentralized off-chain Pyth Network oracle, and fees may vary depending on the asset. The addition of ARB can also help SNX drive growth in terms of its TVL, which has been stagnant for quite some time. 

Source: DeFiLlama

SNX is also set for a show

While Synthetix Perps can witness growth in the near term, the same also seemed likely for the network’s native token, which was shed value over the last week. As per CoinMarketCap, SNX’s price declined by over 21% in the last seven days. At the time of writing, it was trading at $2.33, with a market capitalization of over $591 million. 

How much are 1,10,100 SNXs worth today?  

Metrics were bullish

CaryptoQuant’s data revealed that SNX’s stochastic was in an oversold position, which is a major bullish signal. Moreover, SNX’s exchange reserve was also declining, suggesting less selling pressure. SNX’s MVRV Ratio was down considerably, which might indicate a possible market bottom.

It was interesting to see that despite the price decline, SNX’s supply on exchanges kept falling, which is by and large bullish. Nonetheless, SNX’s funding rate declined on 28 March. This can restrict its price from going up in the short term, as it indicated less demand for the token in the derivatives market. 

Source: Santiment