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Synthetix Price Prediction: What Next for SNX as it Nears $4?

Synthetix Price Prediction: What Next for SNX as it Nears $4?

Last updated 11th Aug 2022
Disclosure
  • Synthetix price has jumped by over 130% from its lowest level in 2022.
  • The developers are working on V3 that will make it fully permissionless.

The Synthetix price rallied to the highest point since June 22nd of this year after the developers announced a partnership with Jump Trading and highlighted the upcoming V3 features. The SNX token is trading at $3.30, which is about 131% above the lowest level in June this year.

Why is SNX soaring?

Synthentix is one of the leading players in the blockchain industry. The little-known platform has a total value locked of about $500 million with most of it being in its Ethereum blockchain. Its Optimism version has more than $132 million in TVL.

Synthetix is a platform in the derivatives industry that makes it possible for people to create derivatives that are known as synths. These derivatives can be of all types of assets like forex and stocks.

Synthetix is also a relatively new player in the perpetual futures industry. Perpetual futures in the crypto industry are similar to those in mainstream finance, with the only difference being that they don't have an expiry period.

Learn more about how to buy Synthetix.

Synthetix price has risen sharply in the past few weeks as investors cheer the comeback of the DeFi industry. In the past few weeks, the total value locked in DeFi has surged to more than $83 billion. This is a substantial figure considering that the TVL fell to about $70 billion.

Synthetix has also risen because of the upcoming ethereum upgrade that will see it become a proof-of-stake cryptocurrency. Since Synthetix is built on Ethereum, it will get more vibrant as speeds increase and costs fall.

Meanwhile, the developers are currently building V3 of Synthetix. This upgrade will come after the highly successful Perps V2 launch that has led to over $2.5 billion in transactions. SNX stakers have earned about $10 million from fees.

The new version will introduce more features like pushing it to become a fully permissionless derivatives platform. It will create a pool to support nearly all financial derivatives and improve staking.

Synthetix price prediction

The four-hour chart shows that the SNX price has been in a strong rebound in the past few weeks. The token has managed to move above the 25-day and 50-day moving averages and is approaching the important resistance level at $3.45. It also rose above the important resistance level at $3.

Therefore, more upside for the coin will be confirmed when it manages to move above $3.45. If this happens, the next key resistance level to watch will be at $4.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.