The Synthetix protocol is based on the Ethereum (ETH) blockchain and provides users with access to highly liquid synthetic assets (synths). Synthetics track, and provide returns, on the underlying assets without requiring the need to hold the asset itself. The platform aims to expand the cryptocurrency space, introducing assets from outside the blockchain, offering access to a more robust financial market.
In this article, we will discuss:
What is Synthetix?
Synthetix is a decentralized finance (DeFi) protocol that provides users with exposure to a wide range of cryptocurrencies, fiat currencies and commodities through tokenized derivative assets known as synthetic assets or synthesizers. Synthesizers do not require the user to hold the underlying asset. Synthetix, built on the Ethereum smart contract network, is an Optimism layer two scaling solution. The protocol was released in September 2017 under the name “Havven”, renaming to Synthetix a year later.
The Synthetix platform enables the creation of on-chain synthetic assets (Synths) that track the value of assets in the real world. Some examples of assets that the platform supports are synthetic fiat currencies (sUSD, sAUD, sKRW, etc.), synthetic commodities like gold (sXAU), as well as more complex assets like stock indices.”
SNX token
The Synthetix Network Token, SNX , is the platform's native token. It is used as collateral to mint synthesizers. SNX holders who have minted synths and maintained a healthy collateral rating receive a portion of the fees generated by the network. According to Messari, 100 million SNX tokens were issued in March 2018, of which 60% went for sale to investors and 40% to founders, staff, network foundation and incentives.
In March 2019, Synthetix changed its monetary policy to inflate the supply of SNX to around 250 million tokens over the next five years. However, the issuance of SNX was changed to be fixed at an annual inflation rate of 2,5% from September 2023. According to Messari, the current inflation rate of SNX was 3,4%. SNX's outstanding offer, which refers to the entire on-chain offer, was 276,9 million as of June 27.
The data revealed that SNX had a high concentration of whale investors, with the top 1% addresses holding around 271 million SNX tokens, representing around 97% of the outstanding offering, as of June 27. Data from IntoTheBlock showed that over 70% of SNX holders have held onto their tokens for over a year.
SNX Price Analysis: 90% away from ATH
As of June 27, Synthetix was the 97th largest cryptocurrency network with a market capitalization of over $317 million. Data from CoinMarketCap showed that SNX increased almost sixfold, going from $0,46 on March 16, 2018 to $2,65 on June 27, 2022. SNX hit an all-time high of $28,77 on February 14, 2021, due to the strong growth in the cryptocurrency decentralized finance (DeFi) industry in 2020, which has been dubbed the “DeFi Summer of 2020”.
Since hitting record levels in early 2021, Synthetix has struggled to raise its rating. The SNX token is down about 25% in 2021. After seeing more selling pressure in 2022, an ongoing bear market has pushed SNX down about 90% from its record levels on June 27. Data from the analytics firm showed that over 98% of SNX holders were holding their tokens at a loss at current prices of $2,65 as of June 27.
Synthetix price forecast for 2022, 2025 and 2030
Synthetix price predictions for 2022 expected the token to drop to an average price of $0,389 by the end of this year. Synthetix's 2025 price forecast saw SNX drop to reach an average price of $0,0791 by the end of the year. According to the forecast, the SNX token could trade at an average price of $3,20 in 2022. The price forecast for Synthetix for 2030 suggested that the token could reach a maximum price of $11,27 by 2030.
Elsewhere, the cryptocurrency Synthetix price forecast expects SNX to rise around 6% to $3,02 in a year. The long-term SNX price forecast suggested that the coin could trade at $3,26 in 2022, $9,99 in 2025, and $64,06 in 2030. Note that Synthetix's price predictions may be off. wrong. Analyst opinions and algorithm-based predictions for the price of the SNX token should not be used as a substitute for your own research. Always conduct your own due diligence before trading. And never invest or trade money you can't afford to lose.
Where to buy SNX token?
SNX cryptocurrency can be traded on the following exchanges:
- Binance
- bitget
- OK
- bybit
Frequently asked questions
Is Synthetix a Good Investment?
Synthetix aims to solve liquidity and slippage issues faced by traders on DeFi protocols. Synthetix's SNX token peaked in early 2021 and traded more than 90% below its all-time high on June 27. It is important to always conduct your own due diligence before trading. And never trade money you can't afford to lose.
Will Synthetix go up or down?
Algorithm-based forecasting services have provided mixed forecasts for the SNX token future price. Some analysts believe the token could lose value for years to come, while other analysts believe it had potential for gains. Forecasts should not be used as a substitute for your own research. Predictions can be wrong. And past performance is no guarantee of future results. Always conduct your own research before trading.
Should I invest in Synthetix?
Synthetix is a decentralized finance (DeFi) protocol that provides users with exposure to a wide range of cryptocurrencies, fiat currencies and commodities through tokenized derivative assets known as synthetic assets or synthesizers. Despite the recent increase in trading activity on the Synthetix network, its token has come under pressure in 2022 amid broader selling of the cryptocurrency market🇧🇷 Conduct your own fundamental and technical analysis of the SNX token to decide whether it might be a suitable asset for you to trade.
