Synthetix is another leading decentralized finance project that had blown the cryptocurrency world. The project has a unique offering which may guarantee it success in the future. The cryptocurrency has shown phenomenal growth from its inception. During the bull run of 2018, SNX token – in comparison – did not accumulate any gains. The cryptocurrency was operating at a price level of barely 50 cents during 2020. However, the bullish momentum of the 2021 bull run resulted in Synthetix establishing a new all-time high at $28.77.
The subsequent market crash resulted in SNX token reversing nearly all the gains accumulated but as the market trend shifted, the cryptocurrency embarked on an uptrend. Synthetix was able to benefit from the bulls but the uptrends have not been sustained. At the time of press, the cryptocurrency stands at a price level of $12.66 . the price has been gaining in the recent timeframes with an increase of 4% in the past twenty-four hours. The past week saw a gain of 9% for the cryptocurrency.
What is Synthetix?
Synthetix is a blockchain-based protocol that allows users to mint new cryptocurrencies. But that is not all. The protocol allows the creation of cryptocurrencies that can mirror any asset or commodity. For example, there is a digital asset which tracks the price of the US Dollar called sUSD. Another asset on the network tracks the price of Bitcoin, sBTC. The sky is the limit with Synthetix and users can program cryptocurrencies to track and mirror any kind of asset they want.
Moreover, the network is completely decentralized and runs on code. The code is the law which makes sure developers and users do not have to worry about any intermediary. The platform is run by smart contracts that are deployed on the blockchain of Ethereum. New assets are generated through collateralization. Users have to collateralize by purchasing SNX tokens and locking them in a special kind of smart contracts which are then utilized to create digital assets called Synths.
Synthetix was originally launched as Havven in 2018. The goa, of Havven was to create cryptocurrencies that mimic the performance of fiat currencies. The platform subsequently rebranded as Synthetix and broadened its scope to all real-world assets.
What is the future of SNX token?
The growth of the decentralized finance sphere is bound to boost Synthetix token in the upcoming days. The project has strong fundamentals coupled with technical. The future predictions of SNX token are bullish. According to the estimates of Wallet Investor, SNX is expected to reach $14 in a year’s time but the uptrend is expected to continue and the cryptocurrency will be operating at $23 in five years’ time. Digital Coin Price is even more bullish on the cryptocurrency. Their estimates place the cryptocurrency at $42 by 2026.
