Synthetix price prediction: More swift reversals?
Trading volumes surge as Synthetix Improvement Proposal 120 (SIP-120) passes
Synthetix is a sophisticated decentralised finance (DeFi) platform launched in 2017 by Sydney-based founder Kain Warwick.
As the name suggests, Synthetix allows users to trade using synthetic assets, which are tokenised versions of assets ranging from cryptocurrencies to fiat currencies and commodities.
Underscoring the Synthetix protocol is the SNX token, an ERC-20-compliant cryptocurrency that is used for staking and governance. In the guide below, we will take a look at the latest price action and price targets of the SNX cryptocurrency.
What is Synthetix (SNX) and what does the Synthetix price prediction have in store in the years ahead? Let’s find out…
SNX: Tokenomics and utility
Before diving into the Synthetix price prediction, let’s look at some key facts.
First and foremost, SNX is used as a staking token for Synthetix’s debt pools. To get their hands on ‘synthetic’ assets, users stake SNX, which is used as collateral until redemption. While staked, SNX is put to work, gathering staking rewards sourced from Sythetix’s inflationary tokenomics and fees generated on the platform.
Secondly, SNX is used as a governance token. SNX holders can make and vote on proposals for protocol changes. Recent proposals have pertained to base borrowing rates, exchange fees and the introduction of commodity (gold and silver) synths.
Currently trading at $3.19, SNX has a circulating supply of 234.5 million against a maximum supply of around 291.6 million, while the market capitalisation is about $748m, according to CoinMarketCap.
In terms of token emissions, SNX is an inflationary token. According to the technical documentation, inflation will decrease by a rate of 1.25% per week until an annualised inflation rate of 2.5% is achieved in September 2023.
On the open market, SNX enjoys support from many major exchanges. Popular exchanges for trading SNX include Binance, Coinbase, FTX and Kraken.
From the Synthetix whitepaper
According to the 28-page whitepaper, the Synthetix ecosystem has created a “peer-to-peer payment network and price-stable token that does not rely on a central authority to maintain trust”.
The document goes on to say: “Programmable blockchains allow the logic of a payment network to be decentralised in a transparent way, enabling anyone to verify whether the network is solvent. This eliminates systemic risk and reduces the costs associated with centralised networks.”
SNX followed a slightly different path from some of the altcoin price trends throughout 2021. Things started off in general alignment, with an impressive bull run throughout February, which saw an all-time high of $28.77 on 14 February. This value was largely sustained leading into May, when SNX enjoyed a high of $23.01 on 18 May.
Despite the subsequent correction, which saw its value plummet to $5.21 on 26 June 2021, SNX saw a strong bull run throughout the first half of July. A strong uptrend was observed leading up to a high of $12.93 on 14 September. Since then, a long-term downtrend can be observed, even during November when the crypto market generally kicked up a gear.
Short-term surges can, however, be observed within this downtrend. Similar trends were observed in late December and early January 2022, plus an elongated correction throughout early February.
However, multiple flash crashes in mid-May and mid-June this year sent the value of the broader crypto markets into freefall. As the total value of the crypto market dipped below $1trn, the value of most altcoins fell with it and by 18 June STX was trading at lows of $1.45 – the lowest price recorded in almost two years.
However, in the following days, there was another strong reversal, and on 20 June 2022, Synthetix was trading between lows of $1.98 and highs of $3.34.
The token enjoyed an uptrend in the following weeks, peaking at $4.33 on 11 August. Another decline followed, roughly in line with the broader crypto markets, and the token tumbled yet again to lows of $2.63 towards the 27 August.
Another steep rally was seen towards the end of the month, however, and as of 30 August the token is trading at $3.25, up more than 15% in a recent 24-hour trading window. A recent surge in trading volume can be attributed to the SIP-120, where users are now able to exchange Synthetix assets without fee reclamation, as part of 1Inch’s integration with Atomic Swaps.
Forecaster price targets
WalletInvestor’s Synthetix coin price prediction forecasts a steep decline in value in the short term, heading as low as $0.31 by the end of the year, having lost about 90% of its value. Losses are expected to continue in the years ahead, according to the forecaster’s Synthetix price prediction for 2025.
The outlook is not quite as bearish at DigitalCoinPrice, and its Synthetix price prediction for 2022 is a yearly average of $4.22. Long-term price targets include $6.20 for 2025, heading up to a Synthetix price prediction for 2030 of $14.58, making for possible returns of close to 360%. This is still nowhere near the token’s all-time high of $28.53 recorded over a year ago.
PricePrediction also offers a comparatively bullish SNX price prediction. Price targets include $3.36 by the end of 2022 and a yearly average of $15.60 in 2025, rising to $32.93 by 2027. By 2030, the forecaster’s Synthetix price prediction suggests a possible price point of $107.05, making for possible 33-times returns.
LongForecast’s Synthetix price prediction shows that the token could sustain steep losses over the short and long term.
Remember: The above SNX coin price prediction targets are based on prior trading data and do not take into account future market volatility and fundamental factors. Potential investors should always carry out their own due diligence on the project before laying down their cash.
How many Synthetix are there?
There are currently 234,504,534.69 SNX in circulation, against a maximum supply of 291,657,310 (80%).
Is Synthetix a good investment?
Sentiment is mixed on SNX. Some forecasters have pessimistic views, whereas others predict steady returns. Make sure to do your own research on the project before investing.
Will Synthetix go up?
While most Synthetix price prediction targets suggest that SNX will go up, WalletInvestor predicts a negative price movement. Make sure to do extensive research on the token before investing.
Should I invest in Synthetix?
You should construct your own Synthetix price prediction targets after reading all available documentation, determining the project’s long-term prospects, and getting independent financial advice.