Synthetix will become the best liquidity layer for the perpetual trading landscape

on Optimism

I. Synthetic assets

Synthetic assets are products that track the price of an underlying asset without

holding the underlaying assets yourself. Benefits of Syths include:

Reduce friction during trading.

Access to a wider range of assets

II. What is Synthetix?

#Synthetix is a liquidity layer built on top of @optimismFND and Ethereum.

Similar to #GMX , $SNX stakers provide liquidity to collateralizes synthetic

assets while the liquidity underwrites the trading of perpetual and synths at the

oracle price.

Synthetix liquidity supports 2 major synthetic assets:

Spots Synths

Perpetual futures

Meanwhile, Kwenta on Synthetix has seen significant trading volume on Optimism

since the upgrade to Perps V2.

But how does it work? To understand, let's start with the basics.

III. How Synthetix works?

Users stake $SNX to mint sUSD, with a minimum C-ratio of 500%.

Upon minting sUSD, users will be issued debt.

Active debt represents user's debt share in the global debt pool, while Issued debt is the debt that the user has during minting.

Traders loss is your gain

When a trader experiences losses his loss lowers the global debt pool's total

value in turn, reducing the average debt among all stakers.

Too complicated? let's use an example.

A mint $100sUSD, issue with 100 debts

B mint $100sUSD, issue with 100 debt

Each user has 50% of the debt pool share (100/200)

A trade sUSD for sETH, loss $50 sUSD, which lower the debt pool to 150/200.

B is issued with 75 debt (50%) now thanks to the trader losses.

Conversely, a trader's win results in staker's loss, as the total value of the global debt pool increases.

As of now, the total debt issued is $126M, with the composition: sUSD (57%) sETH (20%) sBTC (13%)

What's more,

#Synthetix V3 has taken this to the next level.

IV. Synthetix V3 and upgrades

First, Why V3?

In #Synthetix V2, the price of $SNX is unstable, which has affected the stability of the

single-collateral debt pool, and in turn, hindered the scalability of Synthetix.

To overcome the problems, Synthetix team introduced V3.

Synthetix V3 has core features:

Multi-collateral staking

Permissinless pools

Cross-chain

These upgrades are designed to enhance the liquidity, derivatives provision, and the growth of Synthetix.

Among them, multi-collateral staking is especially noteworthy.

V. Metrics

Synthetix V3 is not live yet, however, since the launch of Perps V2, the Synthetix

volume has been consistently rising.

It hit an all-time high volume of $490M on 16/3, with Perps being the most

significant contributor to the volume.

More volume = Higher Fees

Over the past 30 days, Synthetix earned > $3.8M fees from Perps + Spots on L2, and

some atomic swap on L1, reflecting the success of Perps V2.

With whales like @Rewkang joining the ecosystem recently, I'm really excited for

the upcoming V3 upgrade.

GMX price prediction favors the bulls, suggesting a rise in the long term.

GMX price sustained above 50-day EMA showcasing an uptrend.

GMX crypto price defended $60.00 and formed a bullish continuation pattern.

GMX price prediction favors the bulls and suggests a rise in the long term. GMX crypto price has performed well in the past couple of months and is forming a bullish continuation pattern.

It is sustaining above the 50 day EMA indicating that the positional trend is in the upward direction. GMX crypto trading volume is on the rise and follows in the same direction, indicating that genuine buyers are accumulating from the lower levels.

GMX price is trading at $73.39 with an intraday rise of 2.34% and 24-hour volume to market cap ratio at 0.1362. The GMX/BTC pair is trading at 0.002710 BTC with an intraday rise of 2.65%, which shows high correlation between the direction of both the pairs. In the beginning of February, GMX price held the 50-day EMA and gained some positive momentum. Prices later began to rise upward by forming higher-high candles and rallied about 68% in one month.

GMX price lacked momentum near $90.00 and ended up forming a bearish shooting star candle. Thus, $90.00 will act as a strong hurdle level for the bulls in the coming months.

Will GMX Price Continue to Rise?

Source: GMX/USDT daily chart by TradingView

GMX price witnessed minor profit booking from the supply zone. The bears tried to break down the $50.00 support. Luckily, the global market sentiment improved and GMX price gave a strong rebound from the lower levels.

GMX crypto price formed a bullish hammer candle near support suggesting responsive buyers are active at demand zone. Technical analysis suggests, GMX price is in the bulls’ grip and that more upward momentum is possible in the coming months. However, if the price drops below the 50 day EMA, then bears might try to pull the price further down toward the previous lows at $52.00.

GMX Price: Technical Outlook

GMX price forms a bullish continuation pattern and rising volume shows buyers are coming back on track. However, the GMX price will gain momentum when the bulls succeed in breaking out of the $90.00 hurdle level.

Technical indicators like MACD generated a negative crossover but the curve reversing upward indicates mild bullishness.The RSI at 50 sloping sideways shows the bullish and bearish forces neutralising each other.

Conclusion

GMX price prediction favors the bulls and suggests a rise in the long term. GMX crypto price is in uptrend and expected to continue the upward momentum in the coming months. Technical analysis suggests, GMX price is in the bulls grip and might reach $100 by 2023-end.

Technical levels

Resistance levels : $90.00 and $100.00

Support levels : $60.00 and $52.00

#GMX #Binance #crypto2023 #crypto #cryptotrading