- Synthetic price has been in a strong comeback lately.
- The developers will launch the first perpetual futures this week.
Synthetix price has held a bit steady in the past few days as investors embrace the cryptocurrency derivatives industry. SNX is trading at $4.47, which is about 35% above the lowest level this year. Similarly, the ThorChain price has risen by over 20% in the past 24 hours.
What is SNX?
Synthetix is a leading company that provides several services in the derivatives industry. The primary product is one that enables people to create derivatives based on real assets. For example, sETH is a derivative that tracks Ethereum prices while sUSD tracks the performance of the US dollar.
In the past few months, Synthetix has moved from being a top 50 cryptocurrency to leaving top 100. That happened as demand for its solutions faded and competition in its industry rose. As a result, its total value locked moved from over $3 billion to less than a billion.
The Synthetix price is rising after the developers announced that they were launching perpetual futures on Optimism. Perpetual futures are similar to other types of futures but the difference is that they do not have an expiry date. Its futures will have up to 10x leverage.
The company is partnering with Kwenta, a decentralized protocol that is known for its easy-to-use trading UI. The benefit of these futures is that they will help traders to maximize their profitability.
They will also enable a much expanded and capital-efficient trading experience. At the same time. SNX stakers will make more money, which could push the Synthetix price higher. The statement said:
“The initial Futures Beta Launch will feature ETH, LINK, and BTC trading. For the first few weeks, trading will have open interest caps of $20M sUSD for BTC and ETH, and $2M for LINK.”
The announcement came a week after ThorChain launched ThorFi, which is a competitor to Synthetix derivatives solutions.
Synthetix price prediction
The daily chart shows that the SNX price has been in a deep downward trend in the past few weeks. As a result, the coin’s investors have lost billions of dollars in value. At the same time, the price has moved below the 25-day and 50-day moving averages.
Synthetix price has also crashed below the 25-day and 50-day exponential moving averages (EMA), signalling that bears are still in control. It has also formed a descending triangle pattern. Therefore, there is a likelihood that the SNX price will have a bearish breakout in the near term.
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