- Synthetix price has made a strong recovery in the past few days.
- This rebound is likely because of the upcoming Perp V2 launch.
Synthetix price has made a strong rebound as investors wait for the upcoming perps v2. SNX has risen to a high of $2.30, which is about 23% above the lowest level this month. Its total market cap has risen to more than $550 million, making it the 66th biggest cryptocurrency in the world.
Why is SNX price rising?
Synthetix is a leading blockchain project in the decentralized finance (DeFi) space. It is a protocol that provides liquidity for synthetic assets and other derivatives. These assets make it possible for developers to integrate derivatives in its platform.
For example, developers can integrate synthetic assets like Apple, US dollar, and Microsoft. In this ecosystem, these assets are known as sAAPL, sUSD, and sMSFT. Some of the top platforms that have integrated Synthetix are Yearn, Aelin, 1Inch, Curve, and ParaSwap among others.
According to DeFi Llama, Synthetix has a total value locked (TVL) of over $387 million, which was much lower than its all-time high of over $2 billion.
Find out how to buy Synthetix.
Synthetix, which is built on top of Ethereum, has been under intense pressure due to the recent collapse of decentralized finance (DeFi). The TVL in DeFi dropped from an all-time high of more than $150 billion to less than $60 billion. This explains why the SNX price has been in a strong bearish trend.
Synthetix price has recovered slightly because of the upcoming perps V2 launch. This new feature will introduce new features like simulated liquidity, an improved funding rate model, and hybrid oracles. A hybrid oracle like Chainlink is a product that combines smart contracts that run on-chain and off-chain services that are provided by a decentralized oracle network.
Synthetix is known for the substantial fees it generates in the network. In the past 90 days, it generated fees of $14.1 million, making it the fifth-biggest platform in terms of revenue. Synthetix then uses these funds as staking rewards.
Synthetix price forecast
The four-hour chart shows that the SNX price has made a strong recovery in the past few days. In this period, the coin moved above the important resistance level at $2.16, which was the lowest point on September 28.
Synthetix price moved above the 25-day and 50-day moving averages while the MACD has moved above the neutral level. It has also formed a small, inverted head and shoulders pattern. Therefore, the coin will likely continue rising as bulls target the next key level at $2.55.
