The native currency of Synapse, a decentralised finance (DeFi) protocol created to send data via cross-chain bridges, recovered more than 17% from a low of $0.30 after a liquidity provider sold their SYN tokens on Monday.
A wallet that the protocol said was connected to venture capital firm Nima Capital sold 9 million of the tokens on Monday, sending the price down 25%, and it took some time for it to recover.
“Today’s liquidity removal was done by a Synapse liquidity provider who sold their SYN tokens. In order to contact them, we are looking into any strange behaviour on their wallets. After receiving further information.
No security breach of the protocol or bridge occurred, the Synapse team stated at the time on X, formerly known as Twitter. One of the best-performing crypto assets earlier this year was Synapse, which increased by 44% in a single day in February as enthusiasm for cross-chain bridges grew.
Following the sell-off, SYN trade volume exploded, with over $25 million transacted in the last day alone. The greatest sum last week was $5.9 million.
The price of the token increased to $0.425 after a flurry of activity on Binance during Wednesday’s Asia hours, with interest in it still being relatively high. Since then, some of the gains have been lost, and it now trades at $0.358. According to DeFiLlama, the protocol has a total value locked (TVL) of $113 million.