The cryptocurrency Synthetix has within the last week with 23.59% the second largest price increase of the top 100 listed. The coin was able to rise by 6.63% today alone. Exactly what Synthetix is and what has led to the recent rally is now discussed in the following post.
What is Synthetix (SNX)?
syntheticix provides liquidity on the Ethereum blockchain via Optimism, the latter being a scaling solution for ETH. According to Synthetix’s website, the ecosystem comes up in the process $647,700,724 TVS (Total Value Staked).
Within the ecosystem, so-called synthetic assets created and secured by the stakers in Synthetix. The new assets are created by blocking tokens using a smart contract, which can also be used as synths be designated.
This allows transactions to be settled through these synthetic assets. In this context, no counterparty is required either. So then the problems counteracted by decentralized trading places such as lack of liquidity and slippage costs.
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How does Synthetix work?
The Synthetix protocol provides liquidity using smart contracts to issue financial derivative instruments. These are in turn from the Synthetix Governance provided which are made up Spartan, Treasury, Ambassador, and Grant Council put together.
The open source smart contracts of the Synthetix protocol are deployed on blockchains and integrated into oracle networks. Synthetix a kind of API for liquidity, which can then be used by the markets. The synths are chosen by the community and then created. You can include different assets How Cryptocurrencies, fiat currencies, stocks, commodities and anything else that has a price.
Furthermore, there are still in the ecosystem more logs, which arose from the Synthetix community and close collaboration. However, these have nothing to do with liquidity, but are closely related. These include, among others Perpetual futures and spot synthswhich use the underlying liquidity layer to develop novel financial derivatives.
By holding the SNX tokens the investors receive a share of the network fees. The ecosystem generates Income from the activities of the integrators. According to the team, investors should also benefit from the SNX coin inflation benefit.
However, instead of approaching investors directly with his offers, Synthetix provides liquidity in the background for other DeFi protocols. Therefore, some other applications have already been developed for the Synthetix protocol. They include, among others kwenta for trading synthetic perpetuals with 25x leverage, the decentralized options protocol lyre and the trading protocol for assets, sports and other events named Thales.
In addition Some well-known cryptocurrencies are already using the liquidity, such as 1Inch, Curve, Yearn, Dhedge, Paraswap and Aelin.
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What has been moving the Synthetix course lately?
MUX aggregated with Synthetix Perpetuals on Optimism
1/ MUX will aggregate with @synthetix_io Perps on @optimismFND to build the next chapter of decentralized trading!
All markets and liquidity from Perps will be available for trading through the MUX Leveraged Trading Aggregator.
More details in
pic.twitter.com/FyrdrpHsRc
— MUX Protocol
@ETHDenver (@muxprotocol) March 3, 2023
Through the integration of Synthetix Perps, decentralized trading is now possible on Optimism through the MUX protocol. Strictly speaking, MUX is a leveraged trading aggregator.
It is a new platform that offers large open interest limits on a range of assets along with efficient trade execution. By aggregating with Synthetix Perps, MUX can do a high liquidity and some assets like 18 cryptocurrency pairs, 5 forex pairs provide.
MUX will not only Support markets and liquidity of Synthetix perpsbut also the Liquidity optimization for perps positions to use. In this context, the protocol starts with the Synthetix perps on Optimism and is then expanded to other ecosystems.
The task of the MUX Aggregator lies in the Forward trader positions to underlying protocols based on market, position size and compound fees, as well as user preferences.
Synthetix V3 Mainnet is online
The Road to Synthetix V3 has officially begun!
learn more
https://t.co/y1CLOG1TRF https://t.co/ZoJukjKQlR pic.twitter.com/6LrCanqZeQ
— Synthetix
(@synthetix_io) February 22, 2023
Before the release of the Synthetix V3 mainnet, thorough security reviews of Open Zeppelin, losiro and Macro were carried out. Nevertheless, further optimizations should be made, which are not foreseeable in a test environment.
Now the V3 mainnet is ready to go live, accepting collateral to issue the new stablecoin. In addition, meanwhile, the V3 market is under audit so that the Resources slowly shifted to the new mainnet can become.
Should in the future Cross-chain capabilities and scaling in focus of the further developments of the mainnet V3. It is planned that Chainlink’s CCIP will be used for cross-chain stablecoin transfers as well as an interoperable pool synthesis of V2.
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Synthetix (SNX) Price Prediction 2023
Synthetix is currently on 62nd place of the largest cryptocurrencies with a Market cap of $793,015,393. Of the total of 308,069,149 SNX tokens are already 82% in circulation, which is why there is no longer any need to fear excessive inflation. Synthetix was able to change this year from 1.44 to 3.14 US dollars 118.06% increase.
Within the last 24 hours a trading volume of $145,110,249, which is a new peak in this Year is equivalent to. The volume of 19.01 million US dollars is up 663.34% up. However, the On Balance volume has diverged from the uptrend in price and breached the 20-level SMA. Thus, possible sales are displayed.
SNX impulsively broke the 50 Fibonacci level at $3.03 today and started the 61.8 Fibonacci level at $3.41, after which a consolidation started again. If the rally can be continued, the next resistances at $3.41, $3.49 and $4.42. If, on the other hand, the correction is continued, the next supports at $2.97, $2.67 and $2.18.
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About the author: Simon Feldhusen first came into contact with the stock market 16 years ago and has been dealing intensively with trading, cryptoassets, stocks, P2P, corporate finance, finance and entrepreneurship on a daily basis for more than 7 years. He has also been working as a copywriter and ghostwriter in the financial sector for several years. During this time he has acquired a diversified knowledge through various training courses on the financial markets and following the daily news. Since then, not a day has gone by that he hasn’t engaged with the markets. He publishes for Finanzen.net, ETF-Nachrichten.de and Coincierge, among others.
