synthetix synths

The price of the native token of the Synthetix protocol has performed positively thus far in July as some altcoins have been experiencing a bear market rally despite the overall volatility that the financial markets have displayed during the same period.

Since the month started, SNX is accumulating gains of 18.4%. Most of those gains have been produced in the past 24 hours as the price of the token is advancing 14% with trading volumes also surging by 47% during that same period.

Interestingly, the value of cryptocurrencies as a whole according to data compiled by CoinMarketCap has retreated nearly 2% since July started.

Since SNX is going in a different direction than the crypto market in terms of performance, this could be a good time to analyze the prospects of this altcoin and the latest developments that have been influencing its price action.

What’s New with Synthetix?

Syntethix (SNX) released today an update in regards to the completion of several milestones in 2022.

According to the developing team, some of the most relevant achievements of the project since the year started include the launch of Cross-Asset Swaps – a solution that could ramp up the protocol’s trading volumes by creating a bridge between assets A and D by using two intermediary assets – B and C for the purpose of that example.

In addition, the team highlighted the success of perpetual futures and emphasized that they have been noticing higher organic volumes (non-incentivized) that could point to the early success of these products as traders have started to experiment with them already in the relatively short period since they were launched.

Upcoming upgrades include the launch of Synthetix V3, which supposes the creation of a truly permissionless platform that users can employ to create any financial derivative they would like.

What is Synthetix?

Synthetix is an Ethereum-based protocol that allows users to create synthetic assets that can be traded easily and with relatively lower fees compared to both centralized and decentralized exchanges.

The project relies on the Ethereum layer-two protocol called Optimism to reduce fees and improve execution speeds. Since its inception, it has progressively incorporated dozens of ‘synths’ into its portfolio so traders can use the platform to operate in the markets.

Currently, the sUSD token dominates the protocol in terms of total value locked (TVL) with $99 million in assets. Synthetix partners with various protocols including 1INCH, Curve Finance, and yearn.finance to increase the trading volume of its products.

In addition, Synthetix rolled out this year a new product – perpetual futures for various assets that can be used by traders to speculate and operate in the crypto and forex markets.

The SNX token is used to pay for the network’s transaction fees and investors can buy and stake SNX and receive compensation from the collection of trading fees.

Synthetix Price Prediction (2022)

synthetix price prediction 2022

SNX/USDT (Binance) price chart – Source: TradingView

From a technical perspective, the latest uptick does not seem big enough yet to turn the tables around for SNX as the token remains on a downtrend. That said, the 200-day simple moving average has come down so much that it seems within reach if there is enough buying interest.

Momentum indicators are also not favoring a bullish short-term outlook as the Relative Strength Index (RSI) has made a lower high recently while the MACD has flat-lined in the past few days.

In addition, the macroeconomic backdrop is not beneficial at all for altcoins as higher interest rates across the globe mean higher risk premiums for assets such as cryptocurrencies and this translates into lower prices.

In regards to the possibility that SNX has hit bottom already, it seems too early to tell as it is unclear if policymakers will have to continue to adopt hawkish measures to keep inflation from spiraling out of control in their respective economies.

Wallet Investor is, however, bullish in regards to the near-term outlook of SNX based on an analysis of the token’s technical indicators. In this regard, the algorithm’s baseline Synthetix price prediction for the next 14 days stands at $2.84 per coin resulting in a 7.2% upside potential if that target is hit.

The same goes for Gov.Capital as the algorithm-based forecasting service is predicting that the price can hit $3.4 per coin during that same period resulting in even higher gains if those forecasts come to fruition.

Other altcoins also appear to be catching the attention of investors as is the case of Battle Infinity (IBAT) – a play-to-earn (P2E) gaming platform that may have the potential to become the next Axie Infinity. Found out more about this interesting project by joining the official Telegram group.

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