Synthetix to Shift Focus from Base Network to Ethereum Mainnet

In a bold strategic pivot, Synthetix, a leading DeFi protocol, announced on June 14, 2025, its decision to phase out its Layer-2 deployments on the Base network and refocus its efforts on the Ethereum mainnet.

The announcement marks the end of an era for the protocol’s L2 experiments, which began with its pioneering move to Optimism in 2019. The decision stems from persistent challenges, including "ongoing infrastructure instability and fragmented liquidity", prompting Synthetix to return to Ethereum, the "world’s most secure smart contract platform".

Synthetix’s official statement declared, "L2s are dead. The experiment is over. Synthetix is going all-in on L1". This shift includes sunsetting trading on Base and closing liquidity provider (LP) vaults, with a detailed deprecation timeline outlined.

The protocol’s native token, SNX, has faced significant bearish pressure, tumbling over 83% from its last notable rally in December 2024, dropping from $3.67 to $0.63. This financial strain, coupled with the L2 challenges, has fueled the return to Ethereum mainnet, where Synthetix plans to launch its first perpetual futures DEX.

A New Chapter: Innovations and Incentives on Ethereum Mainnet

Synthetix’s return to Ethereum is not merely a retreat but a strategic reorientation aimed at leveraging the mainnet’s security and scalability.

The protocol’s official blog notes, "Synthetix has learned that in order to win we need to own the customer experience, offer an orderbook instead of an AMM, and deploy on Ethereum mainnet instead of L2s".

This new perps exchange will utilize a chain-off order matching system combined with on-chain settlements, promising enhanced speed and user experience.

To encourage migration, Synthetix is rolling out early deposit vaults for its stablecoins, sUSD and sUSDe, alongside a points program and gated trading competitions requiring invite codes, with the campaign set to begin by the end of June 2025.

For sUSD holders on Optimism, the protocol will provide tools to bridge assets to the mainnet, though Optimism’s L2 deployment remains supported for now. This move aligns with a broader industry trend, as Ethereum core developers refocus on scaling Layer 1.

Strategic Opportunities and Market Outlook

The closure of Base deployments and the pivot to Ethereum mainnet could have significant implications for Synthetix’s market position. Analysts suggest that if Synthetix successfully delivers on its technological roadmap, SNX could reach $5.50 to $7.50 in a bullish market scenario within 1-3 years.

However, the crowded DeFi landscape and regulatory challenges pose risks, with unfavorable regulations potentially stifling growth.

Synthetix’s official website highlights its past success, noting that liquidity providers have earned $8M in rewards over the past year, signaling a strong foundation to build upon. As the protocol prepares for its mainnet launch, it invites the community to join this critical stage, promising a high-performance perps exchange that could cement Ethereum’s role as "the home of global finance".

With the transition underway, all eyes are on Synthetix to see if this strategic shift will restore its prominence in the DeFi ecosystem.