Reasons to be bullish on SNX
It is well-known that countless altcoins experienced astonishing rallies in March and December 2014, creating numerous wealth myths. However, Synthetix (SNX) has remained low-key and stable. Does this mean SNX has missed the opportunity? The answer is no! On the contrary, SNX is like a beast ready to pounce, about to explode!
Synthetix is a decentralized synthetic asset issuance protocol built on the Ethereum and Optimism blockchains. The protocol allows users to mint and trade various synthetic assets, including cryptocurrencies, fiat currencies, stocks, indices, etc. SNX is the native token of the Synthetix network, used for collateralizing synthetic assets and participating in network governance.
As of January 7, 2025, SNX's price is $1.81, down 8.17% in the past 24 hours. Over the past week, SNX's price has changed as follows:
Social media data shows that 979 users are discussing Synthetix Network Token, ranking it 401st in terms of mentions and activity in the collected posts. In the past 24 hours, the average sentiment score for Synthetix Network Token across all social media platforms was 3.3 out of 5.
This report will focus on the latest developments and trends of the Synthetix project and present a bullish view on SNX.
Latest developments of the Synthetix project
The Synthetix project has made significant progress over the past year, including:
● Acquisition of Kwenta and TLX: Synthetix has acquired its ecosystem's leading perpetual contract trading platform Kwenta and leverage token platform TLX through a token swap. This move aims to unify the strategic focus of the two protocols and reintegrate Kwenta as the front end within the Synthetix ecosystem. The acquisition of TLX lays the groundwork for Synthetix to build and provide a wider range of structured products. Through these two strategic acquisitions, Synthetix is moving towards becoming a one-stop platform for DeFi derivatives trading, offering users a broader range of product choices and attracting more users to its ecosystem.
● Synthetix Exchange relaunch: Synthetix Exchange has relaunched and released multi-collateral perpetual contracts on the Base chain. This marks the first major product release for Synthetix after the governance reform in October. Launching Synthetix Exchange on the Base chain allows Synthetix to reach a new user base and potentially increase trading volume and demand for SNX.
● Governance reform: A proposal aimed at completely reforming the Synthetix protocol received 99.4% approval from community members. The new governance model will enhance the efficiency and flexibility of Synthetix.
● Mobile trading: Synthetix perpetual contracts can now be traded via the mobile-first platform Mass. This will allow more users to conveniently access Synthetix's products.
● Partnership with DWF Labs: The derivatives liquidity protocol Synthetix has partnered with Web3 quantitative trading firm DWF Labs and secured a $20 million investment. This will provide financial support for the development of Synthetix. ● Surge in whale activity drives price increase: Synthetix (SNX) reached a 15-month high amid a surge in whale activity. This may indicate that large investors are increasingly confident in the project and could drive the SNX price higher.
● Multi-platform availability: Synthetix products are available on multiple platforms, including Synthetix Exchange, Synthetix Leverage, Mass Money, CyberDex, Toros, and Parifi. This showcases the diverse ecosystem built around Synthetix and its accessibility across different platforms.
● Synthetix has a vibrant and creative community. Community members actively participate in governance, propose improvements, and contribute to project development.
● The synthetic asset market has broad prospects, and Synthetix, as a pioneer in the synthetic asset space, will capture a significant market share.
● With the continuous development of cross-chain technology, Synthetix will be able to connect more blockchain networks, further expanding its influence.
● Grayscale endorsement, institutional recognition. Grayscale Investments, one of the world's largest cryptocurrency asset management companies, holding SNX undoubtedly represents a significant recognition of the Synthetix project. The entry of institutional funds will provide strong momentum for SNX's price increase.
Why has SNX remained silent during the altcoin frenzy?
SNX's silence during the altcoin frenzy in March and December is not due to issues with the project itself, but because: · The value is undervalued: SNX's value has long been underestimated, and the market has yet to fully recognize its immense potential. · Built-up energy: The Synthetix team focuses on long-term project development and does not pursue short-term hype. Overview and development trends of the DeFi market The DeFi market has developed rapidly in recent years. Despite experiencing a bear market in the crypto market in 2022, the DeFi market has maintained its growth momentum. The following table summarizes predictions for the scale of the DeFi market from different sources:
Factors driving growth in the DeFi market include:
● The global adoption rate of blockchain technology is continuously increasing: Governments worldwide are actively promoting fintech innovation, facilitating the application of blockchain technology.
● DeFi applications provide alternatives to traditional financial systems: DeFi applications offer users more convenient and transparent financial services.
● Advantages of DeFi technology: DeFi technology features decentralization, transparency, and security, eliminating reliance on centralized financial institutions. Synthetix's competitive position in the DeFi market The DeFi market is highly competitive, and Synthetix faces competition from major protocols such as Uniswap, Curve, and Aave. According to CoinGecko data, the 24-hour trading volume of decentralized exchanges (DEX) is $11.4 billion, with DeFi trading volume accounting for 5.7% of global cryptocurrency trading volume. By trading volume, the largest three decentralized exchanges are Uniswap V3 (Ethereum), Aerodrome SlipStream, and Raydium. To better understand Synthetix's competitive position, we can compare it with major competitors:
Synthetix's advantage lies in its versatility, allowing users to trade various synthetic assets, not just cryptocurrencies. Additionally, Synthetix has high scalability to support a large number of transactions.
Technical roadmap and future plans of the Synthetix project
Synthetix plans to continue expanding its products and services, including:
● Launch of new synthetic assets: Synthetix may add more types of synthetic assets, such as stocks, indices, commodities, etc., to meet users' diverse needs.
● Improving the trading experience: Synthetix may enhance user experience by optimizing the user interface, reducing transaction fees, and increasing transaction speed.
● Enhancing security: Synthetix may implement stricter security measures, such as multi-signature, audits, etc., to ensure the safety of user assets. Synthetix also plans to further develop its governance model and strengthen community participation to improve the project's decentralization and community autonomy. Now is the best time to position SNX! As DeFi continues to evolve, the enormous potential of synthetic assets will gradually be unleashed, and the value of SNX will gain market recognition. Now is the best time to position SNX; seizing the opportunity may yield substantial returns!
Reasons to be bullish on SNX Based on the analysis above, we believe SNX has high investment value. Here are the reasons supporting this view:
● The continuous development of the Synthetix project: The Synthetix team consistently launches new products and features and actively expands partnerships. This indicates that the Synthetix project has strong development momentum.
● The growth potential of the DeFi market: The DeFi market is expected to continue growing, which will bring more users and trading volume to Synthetix, thereby increasing the demand for SNX.
● Utility of SNX: SNX is the native token of the Synthetix network with various uses, including collateralizing synthetic assets, participating in network governance, and earning rewards. These utilities will support the value of SNX.
● Community support: Synthetix has an active community that provides strong support for project development. The active participation of the community contributes to the prosperity of the Synthetix ecosystem.
● Technical advantages: Synthetix utilizes advanced blockchain technology, featuring scalability, security, and efficiency. These technical advantages will enable Synthetix to remain competitive in the DeFi market.
● Technical analysis forecast: Based on technical analysis, SNX is considered an excellent long-term investment, with its price expected to reach $44 by December 15, 2025. Synthetix is a DeFi project with enormous potential. Its ongoing developments, including strategic acquisitions, new product launches, and governance reforms, position it favorably in the rapidly growing DeFi market. These factors, combined with the utility of SNX, strong community support, and technical advantages, suggest that the value of SNX will continue to grow. Despite some potential risk factors, we believe SNX is an asset worth long-term investment, with significant growth potential.