Synapse Token Surges 44% as Cross-Chain Momentum Builds
Synapse (SYN), the native token of the cross-chain Synapse Protocol, is trading at a five-month high of $1.22 following a 44.74% move to the upside over the past 24-hours.
The token has outperformed its competitors across decentralized finance (DeFi) since the turn of the year, rallying by 151.56% compared to 58.27% for the sector, according to CoinDesk's DeFi index.
Synapse's ascent has been in-part due to the popularity of the Synapse bridge, which allows users to transfer assets across several blockchains. Since its inception, the Synapse bridge has facilitated $11.45 billion in transfers, according to data on the protocol's website.
Cross-chain bridges are being used more frequently as astute traders attempt to lock in the highest borrowing yields across different blockchains. Recently launched layer 1 blockchain Canto experienced a wave of volume last week. The Synapse bridge facilitated $47 million of cross-chain transactions to Canto since Jan. 25 and Wednesday alone saw $12.2 million in bridged transactions - a record over a 24-hour period.
Synapse users have also been benefitting from lucrative staking yields with the SYN/ETH pool on Sushiswap, which is accessible on the Synapse user interface and generating 106.69% APY.
Cross-chain bridges wandered in the crosshairs of hackers last year due to the novel underlying technology. Blockchain security firm Chainalysis estimated that $2 billion had been stolen from cross-chain bridges in the first eight months of 2022. This figure includes the $625 million Ronin Bridge exploit, which was targeted by North Korean hacking Group Lazarus.