Cryptocurrency adoption is on exponential growth, especially altcoins and, more so, those associated with decentralized finance (DeFi). One of the altcoins whose popularity has risen is the SNX coin, whose current average market price is above $9.
This article will look at Synthetix network token price to help investors understand what to expect with the Synthetix price action in the future. But before we get into the price forecast, we shall explain what SNX coin is and what it is used for.
What is SNX?
SNX is the native cryptocurrency of the Synthetix network. Currently, there are about 114,841,533.01 SNX coins in circulation supply out of the total maximum supply of 212,424,133 coins. It is currently ranked at position 71 with a market cap of $1,624,800,798.
The SNX token is an ERC20 token, and therefore it is compatible with ETH wallets.
Besides facilitating activities (specifically to offer collateral) within the Synthetix network, SNX holders can become SNX stakers by staking their SNX coins to earn staking rewards.
What is Synthetix network?
Synthetix Network is a decentralized finance (DeFi) protocol that allows users to trade synthetic assets (synths).
Currently, the Synthetix network is the 40th largest cryptocurrency trading exchange around the world.
SNX is a derivative product
In a nutshell, synthetic assets are derivative products that are issued and traded on DeFi protocols. They are similar to traditional derivative products that derive their value from the underlying assets like cryptocurrencies, fiat currency, commodities, precious metals, bonds, and stocks.
The underlying assets are cataloged onto a DeFi protocol like the Synthetix network through tokenization by using smart contracts. Then the tokens, which represent a certificate of ownership of the real-world assets, are issued to investors and traders who can then go ahead and trade the derived assets without holding the real-world assets.
Synthetix unique features
Synthetix network was among the first blockchain protocols to introduce synthetic crypto assets.
The synthetic cryptocurrency assets minted via the Synthetix protocol are synths and have an ‘s’ at the beginning of their names. If the underlying asset is the USD, for example, the synthetic asset on Synthetix would appear as sUSD, BTC would appear as sBTC, ETH would appear as sETH, and so on.
The synths are voted by the community for them to be allowed to exist on the Synthetix protocol.
The prices of the underlying assets of the synths are tracked using smart contract price delivery protocols known as oracles. This system ensures that there are no slippage or liquidity issues when traders are trading the synths.
To mint a synth on the Synthetix network, a user will have to lock up some SNX tokens in a smart contract.
Who is the Synthetix founder?
Synthetix network was launched in September 2017 under the name Havven (HAV). Its founder is Kain Warwick. Havven (HAV) rebranded to the current Synthetix name a year later, a name it has maintained to date. Warwick is also the founder of Pouncer, a live auction Australian site, and a non-executive director at blueshyft retail network.
SNX price history
The Synthetix token was first listed on a crypto exchange for trading in March 2018. Until June 2020, the SNX was trading below $1.5, as seen in the chart below.
Figure 1. Synthetix price history chart by CoinMarketCap
However, in July 2020, the Synthetix coin unleashed a monster bullish rally that continued until February 2021. And during the bullish momentum, the SNX hit an all-time high of $28.77.
After hitting the all-time high, SNX price took a downwards turn to drop to around $6 in June 2021.
The cryptocurrency is currently in a bullish trend that it has sustained since the end of June.
To speculate the next market step over the following months and years, we shall have to look at the Synthetix price prediction in detail. But before doing that, let us first see what the technical analysis says about the coin.
SNX price prediction technical analysis
Figure 2. Applying Pivots Points indicator on SNX chart on TradingView
Using the pivot points custom indicator on the Synthetix price chart shows that the cryptocurrency is currently trading within the S1 support level and R1 resistance level. It has been oscillating about the pivot point, and the direction that it decides to break out in will most likely determine the trend it will take in the coming months.
Figure 3. Applying moving averages indicator on SNX chart on TradingView
The same case applies when you apply the moving averages. The digital coin cannot be in any predominant trend at the moment since it is neither above nor below the MA trend line.
However, it is essential to note that the SNX price is at the bottom of the Fibonacci retracement level, meaning a bullish market trend is very probable in the coming days.
Figure 4. Applying Fibonacci retracement indicator on SNX chart on TradingView
Synthetix price prediction
We shall look at both short-term and long-term SNX price predictions.
Short-term Synthetix price forecast
The short-term Synthetix price prediction shows that the Synthetix network token price will continue to oscillate at the current price range for the coming days before eventually breaking out for a bullish trend.
Figure 5. Short-term Synthetix price prediction by WalletInvestor
Looking at the table below, it is evident that the Synthetix price will have hit a maximum price of $10.505 and a minimum price of $7.209. By the end of August, the average price of the SNX token is forecast to be $9.180.
Figure 6. Table showing the maximum price and minimum price for SNX price forecast in the coming days
Long term SNX price forecast
Looking at the SNX prediction for the remaining 2021 and 2022, the cryptocurrency is forecast to have a bullish trend that is expected to start in September 2021 and move on till the end of 2022.
Figure 7. Synthetix Forecast, Long-Term Price Predictions for Next Months and Year 2021, 2022
According to the above Synthetix price prediction, the Synthetix network token price is expected to be above $12 by the end of 2021. The price will then continue climbing to above $15 in 2022, and it would probably try testing the current all-time high if the bullish price movement is maintained.
Is SNX a good investment?
According to the above Synthetix price prediction and market analysis, SNX cryptocurrency could be a good investment. Its safety rank is currently above 3 out of 10, and the return of investment (ROI) at its current value is 2032.39%.
Also, according to the price data obtained in the above predictions, Synthetix is projected to continue growing further to become a DeFi bluechip with a market capitalization of above $2 billion.
Where can you buy Synthetix (SNX)?
If you want to buy SNX coins, you can sign up with any of the following crypto exchanges.
- Coinbase Pro
- Uniswap (V2)
The above Synthetix price forecast is in tandem with the USD predictions within the same period.
The price prediction will come in handy for investors wondering if SNX is a good investment or not. To make up your mind, you can go through the detailed Synthetix network token price forecast and look at what SNX and Synthetix networks are. That way, you shall have a clear picture of how the cryptocurrency intends to impact the cryptocurrency market and, therefore, gauge how likely it is for the SNX value to grow in the coming months and years.
Nevertheless, besides using this price prediction, it is also essential to look for further investment advice from your financial advisers to know how much to invest and how long. It would help if you were also advised that investing in the crypto market is extremely risky due to market price volatility. A trader requires a very high degree of risk tolerance to become successful even with accurate price predictions.