Synapse, a decentralized finance (DeFi) protocol designed to transfer data to cross-chain bridges, saw its native token SYN rebound more than 17% from a low of $0.30 after a liquidity provider sold its tokens on Monday. The price had previously slumped 25% when a wallet the protocol said was tied to venture capital firm Nima Capital sold 9 million of the tokens.
A Synapse liquidity provider sold their SYN tokens and removed liquidity today. We’re investigating unusual activity on their wallets and are working to get in touch with them. Will update once there is more info. There was no security breach of the protocol or bridge, the Synapse team wrote on X, formerly known as Twitter.
Synapse was one of the best performing crypto assets earlier this year, rallying by 44% in a single day in February. Volume of SYN trading ballooned in the days following the sell-off, with over $25 million being recorded in the past 24-hours. Last week’s highest total was $5.9 million, according to CoinMarketCap.
The token spiked to $0.425 following a flurry of activity on Binance during Asia hours on Wednesday, though it has since lost a portion of those gains as it trades at $0.358. The protocol has total value locked (TVL) of $113 million, according to DeFiLlama.
Nima Capital had not responded to an email request for comment by publication time.