Synapse's Resilience: A 17% Rebound Amid Selling Pressure

Synapse's native cryptocurrency, SYN, managed to stage an impressive recovery, bouncing back by over 17% after facing a significant drop to $0.30. The price decline, which amounted to a 25% decrease, occurred when a wallet reportedly associated with the venture capital firm Nima Capital sold a substantial amount of 9 million SYN tokens.

The Synapse team addressed the situation promptly, noting that one of the liquidity providers had sold their SYN tokens and removed liquidity. They also mentioned that they were investigating unusual activities in the wallets linked to this incident. However, they assured the community that there had been no security breach in the protocol or its cross-chain bridge.

Earlier this year, Synapse had shown remarkable performance, surging by 44% in a single day in February, fueled by growing optimism surrounding cross-chain bridges. Subsequent to the sell-off, the trading volume of SYN experienced a significant increase, with over $25 million traded in the 24 hours following the incident, compared to the previous week's highest total of $5.9 million, as reported by CoinMarketCap.

SYN/USD Chart by TradingView 

Despite some fluctuations, SYN's price reached $0.425 during active trading hours on Binance in the Asian market. However, it has since retraced some of those gains, currently trading at $0.358.

Synapse boasts a total value locked (TVL) of $113 million, according to DeFiLlama, showcasing its substantial presence in the decentralized finance ecosystem.

As of the time of publication, Nima Capital had not responded to email requests for comment regarding the incident.