- Synthetix price has crawled back in the past few days.
- Its TVL has risen to over $539 million as demand rises.
Synthetix price has done relatively well in the past few weeks as demand for the coin rise. The SNX token rose to a high of $4.41 in August, which was about 200% from the lowest level this year. It is trading at $3.21, bringing its market cap to over $755 million.
Synthetix demand rising
Synthetix is a leading Australian blockchain project that describes it as the derivatives liquidity protocol. It helps developers create synthetic asses, which gives people access to real-world assets on the blockchain.
The derivatives solutions created in Synthetix are known as synths. For example, it is possible for people to create assets like stocks, forex, and commodities. Some of the most popular synths in the platform are sUSD, sAAPL, and sEUR among others.
Synthetix has also expanded its services to the perpetual futures industry. A perpetual future is a financial derivative that is similar to other futures in the stock and indices industry. The only difference is that these futures don’t have an expiry date. SNX is the native token for the Synthetix platform.
Synthetix is used in some of the top decentralized platforms like 1Inch, Curve, Paraswap, and Yearn Finance among others.
Learn more about how to buy Synthetix.
Synthetix also recently launched cross asset swaps, which is a liquid bridge to optimize large trades through automated market makers (AMM) and aggregators. For example, instead of trading USDC into ETH, traders can simply trade virtual synths. In this case, sUSD and sETH can be used as a bridge between USD stablecoins and ETH.
Synthetix price has done relatively well in the past few days as the volume of the network rose. According to DeFi Llama, the total value locked (TVL) rose to over $539 million from the year-to-date low of $246 million. It also rose after the recent proposal to cap the supply of SNX at 300 million.
Synthetix price prediction
The four-hour chart shows that the SNX price has been in a recovery mode after it dropped to a low of $2.61 last week. The coin rose above the ascending trendline that is shown in black.
Synthetix price rose above the 25-day and 50-day moving averages. The Relative Strength Index (RSI) moved above the neutral point at 50. It has also formed a break and retest pattern by moving slightly below the support at $3.30.
Therefore, the coin will likely continue rising as bulls target the next key resistance level at $4. A drop below the support at $3 will invalidate the bullish view.
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