Synthetix Announces Strategic Pivot to Ethereum Mainnet

The decentralized finance (DeFi) protocol Synthetix has announced a significant strategic shift, aiming to phase out all of its Layer-2 (L2) deployments on the Base network by July 7. The derivatives protocol will now concentrate on the Ethereum mainnet, diverging from the industry trend of L2 expansion.

Reasons for Refocusing on Ethereum Mainnet

Synthetix cites ongoing infrastructure instability and fragmented liquidity as primary reasons for this move. Consequently, liquidity provider (LP) vaults have halted accepting deposits following this announcement.

Related: sUSD Crashes Below $0.77: Synthetix Faces Challenges After Major Protocol Changes

All existing Synthetix products on the Base network, including perpetual futures and LP vaults, will be fully deprecated by the July 7, 2025, deadline. However, the project will continue to support the Optimism L2 network.

New Strategy for the Ethereum Mainnet

Synthetix plans to launch early deposit vaults for its stablecoins, sUSD and sUSDe, as part of its renewed focus on the Ethereum mainnet. They will also introduce point-based incentive programs for participants, while still maintaining support for Optimism L2. Additionally, the blockchain solution is developing tools to assist sUSD holders in migrating their assets to the Ethereum mainnet.

SNX Token Price Decline

The Synthetix native cryptocurrency, SNX, has experienced significant downward pressure, declining over 83% since its last notable rally in December 2024. The token’s price dropped from $3.67 to $0.6128, according to TradingView data.

Related: Synthetix Founder: Meme Coin Craze Echoes ICO Bubble, But There’s a Twist

The restructuring planned by the Synthetix team could revitalize interest in its native coin, though users will need to see how these changes impact demand and SNX’s value.

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