As the crypto space is expanding its presence, new use cases emerge every new day. One of them that stands out from the crowd is the Synthetix Network which replicates not only the crypto assets but also the assets from the external world. It enables the users to bet on the digital world assets like cryptos and real-world assets like the Fiat currency, gold, etc. One can easily collateralize their Synthetix tokens in exchange for these assets and track their value.
The Synthetix Network is empowered by its native token SNX which is an ERC-20 token that operates through Smart contracts. The SNX price had sky-rocketed during the 2021 bull run which has now bottomed hard with multiple failed rebound attempts. Despite a decent growth in the trading volume, the price is unable to flip the downtrend. And hence lies within the crucial zones, where-in a notable rebound is the need of an hour.
Introduction to Synthetix Network-In Brief
Kain Warnick 2018 founded a platform called Havven raising about $30 million by selling 60 million HAV tokens. Further by the end of 2018, Havven was rebranded to Synthetix Network to expand its goals to include Synthetix for crypto assets including the Fiat & Commodities. Further in 2019, the network raised $3.9 million by selling SNX tokens to the ventures.
Synthetic Network runs on the Ethereum blockchain and operates on the mechanism of Smart Contracts. SNX is governed by 3 Decentralized Autonomous Organizations (DAO’s) which was formed by dissolving a Non-Profit Organization in June 2020. Here the SNX holders can monitor and vote for the betterment of the network and future upgrades. Synthetic is among the emerging DeFi assets which do not require any financial intermediary to carry out its mission.
How Does Synthetix Network(SNX) Work
Synthetix to carry out the functions smoothly utilizes two cryptocurrencies, its native token SNX, and the mimic token Synths. The Synths token is the replica of any other asset like the Fiat or Gold or any stocks like Tesla, etc. To generate Synths, the user has to stake SNX tokens on the platform. Further, after staking, the user can mint any other asset of his choice.
The platform uses Chainlink’s decentralized Oracles to fetch accurate current prices which are impossible to manipulate. Coming to the governance, the platform as mentioned before is governed by three different DAO’s having their specific roles,
- Synthetic DAO: It funds the participants who are responsible for the development of the platform.
- Grants DAO: This DAO grants funds for the community proposals which are required for the betterment of the protocol
- Protocol DAO: It is responsible for generating the smart contracts as and when required by the user.
One of the most significant milestones achieved by the platform is its shift on the Ethereum layer-2 which intends to minimize the gas fees to a large extent.
Will SNX Price Hit $100 in 2022?
SNX price that began 2021 trade being price below $5 surged high at lightning speed to mark highs beyond $28 in very quickly. Despite a couple of pullbacks yet the asset left no stones unturned to maintain above $20 levels. But woefully, the May crash dragged down the price drastically which could not cliche through the $15 levels further. However, maintaining a consistent downtrend, the SNX price slid down below $10 and currently hovering around $5.
The short-term is a little bullish where-in one can expect an interim relief from the bearish trend. But in the long-term, the asset is extremely bearish and constantly forms lower lows and highs within the depleting channel. Currently, it is residing along with the same levels, at which it initiated the bull run of 2021, shedding all its gains. And hence ranging high flipping the present downtrend appears a tedious job.
The selling volume is mounted heavily which is not allowing the selling to prevent losses. While the technicals point out towards an acute bearish trend, the asset remained below the crucial 200-day MA levels for a pretty long time. Therefore, a huge change in the trend can only be expected with a shift in the momentum with a large influx of buying volume as the sellers tend to get exhausted at a certain point.
Factors Impacting SNX Price Today
The SNX Economics
The user needs to stake SNX tokens to receive Synths, and as SNX is a cryptocurrency, the value tends to change. And hence the amount of SNX in circulation changes with the SNX price going up or down. In short, with the rise in SNX price, more the number of Synths can be created.
Synthetix Reward Structure
The user who stakes his/her SNX becomes eligible for the rewards or fees on the platform. The platform charges nearly 3% of an exchange. For example, to change $1000 worth USD to SBTC, the user will be charged $3. This reward is further distributed among the users who have staked their SNX on the platform.
Decentralized Perpetual Futures
Synthetix offers a decentralized future platform that is permissionless and composable with the lowest downtime and liquidation risk. The platform also offers the best price execution with very little or no slippage.
Many platforms like 1Inch, Curve, Yearn, etc have already leveraged deep liquidity composability of the Synthetix network to deliver better trades with lower slippage.
Where & How to Buy Synthetix(SNX)
Synthetic(SNX) is widely available for trade on most of the major crypto platforms. However, what makes CoinDCX stand away from the crowd is the ease of its use and loaded features. CoinDCX being India’s most trusted cryptocurrency exchange, is also the country’s first Unicorn.
Registering here is pretty simple, just download the CoinDCX mobile App and follow a very few simple steps. Importantly, do not forget to complete your KYC. With the new year, 2022 has kickstarted, the App is also getting upgraded with loaded features called the CoinDCX Pro. Here you enjoy advanced features at a single touch.
Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.