On July 9, 2020, Binance exchange announced that it had listed Synthetix (SNX), one of the top DeFi protocols on Ethereum that tokenizes real-life assets.
“Binance will list Synthetix (SNX) and open trading for SNX/BTC, SNX/BNB, SNX/BUSD and SNX/USDT trading pairs at 2020/07/09 12:00 PM (UTC). Users can now start depositing SNX in preparation for trading,” the exchange explained.
Synthetix is a platform that specializes in minting and exchanging synthetic tokens that mirror the price of other real-life assets.
SNX tokens track the price of other assets, both crypto and from the real world, by using oracle price feeds and some economic incentive mechanisms.
The SNX project has emerged as one of the biggest ecosystems in decentralized finance (DeFi), gaining over 230% in the last 30 days.
Presently, Synthetix has a total USD value locked in the platform amounting to a whopping $395M, as per data from DeFi Pulse.
SNX Tokenizes Real-life Assets
Synthetix recently launched the Hadar upgrade, which permitted the easy tokenization of real-world assets such as the Nikkei index.
Tokenized securities and commodities are often hailed as one of the most promising use cases in the real world.
Its advocates argue that tokenizing real-world assets, especially those currently not traded as liquid assets on exchanges, would improve those markets’ efficiency and make them available to more investors.
The synthetic asset system eradicates legal and practical barriers that have long barred tokenized commodities from being embraced as more than just a niche application.
According to Framework Ventures’ co-founder Michael Anderson, Synthetix will flourish by being the pillar of the entire DeFi and cryptocurrency ecosystem, where digital tokens representing real assets can be used as security or for trading.
Synthetix has also boomed in the wake of Coinbase exchange listing SNX, with ETH miners profiting heavily as gas fees have soared.
The Binance Listing Effect?
Being listed on a prominent trading platform as big as Binance is a huge deal for crypto assets. For instance, DigiByte, a decentralized cryptocurrency network, spiked within hours of being listed on Binance.
The DGB token reacted strongly to the listing, seeing its value rise by 30% less than two hours after the news broke.
SNX could also follow suit, as today’s listing on Binance is projected to boost the token’s trading volumes and make SNX more accessible to investors.