On August 16, the price of Synapse’s native token SYN increased by more than 40% to over $0.57. This impressive price increase saw a 203% increase in daily trading volume to over $68 million, while the market cap was around $107 million at the time of writing.

Such spikes are usually triggered by big news or increased interest in the project, in this case an important announcement from Binance.

Binance announced the launch of the SYNUSDT Perpetual Contract and this announcement created a lot of excitement among investors. Perpetual contracts are a part of futures trading and offer investors the opportunity to buy or sell a specific asset at a specific price in the future. Such contracts often make it possible to speculate on future movements of asset prices.

With this type of contract, buyers or sellers are obliged to make transactions at the agreed price. At the conclusion of the contract, the party that incorrectly predicted the price movement pays the winning party.

When Synapse futures trading began on Binance at 12:30 UTC on August 16, investors were offered up to 50x leverage. While this type of high leverage allows traders to make large profits from small price movements, it also increases risks. The contract will be settled in USDT, which will provide significant liquidity for investors.

This latest rise of Synapse was not limited to Binance’s announcement. At the same time, there is great expectation in the community about the upcoming launch of the Synapse chain and Interchain network.

This launch is expected to take place in August, and this expectation is seen as a major factor contributing to the increase in the price of the SYN token. Sigil Fund partner Joe HedgeHog also confirms this and states that SYN’s price has increased due to the high expectations of the community for this launch.

Additionally, one address was recently reported to have accumulated more than $1 million in SYN. This large accumulation may have increased the upward pressure on the token. In crypto markets, addresses that accumulate large amounts of tokens often create significant impacts on the market, as such movement is often perceived as a sign of confidence among investors.

However, despite there being no major news directly linked to the Synapse network, investors continue to remain optimistic about the project. The project’s increased visibility and upcoming major milestones stand out as other factors behind this recent rise in SYN’s price.

The key price target for Synapse remains the all-time high of $4.92 reached in October 2021. Reaching this level again would be considered a great success for the Synapse project.

However, it should not be forgotten that reaching this point will depend on market conditions and the performance of the project in the future. The future of Synapse continues to generate great curiosity and interest in the crypto community.