What's Synthetix (SNX) and Why Is It Rallying Today?

Dec 07,2022
What's Synthetix (SNX) and Why Is It Rallying Today?
  • What is Synthetix?
  • Why does SNX rally?

Synthetix is a new project that has gained great attraction before the cryptocurrency market broke out in November 2021. As of today, although the market continues to decline, Syntheticx is still making progress.

What is Synthetix?

Synthetix is a kind of sporadic and circulating supply agreement, which can be used by any other agreement for various purposes. The most popular solution of Synthetix Network is to sell synthetic assets, track and provide the income of supporting assets without needing me to own the assets immediately.

Synthetic assets allow the establishment of tradfi assets of blockchain technology version, which also makes the definition of cross industry trading a reality. Without leaving the field of data assets, investors can obtain that they cannot transfer assets on blockchain technology.

Synthetix is the liquidity service provider of the above assets. Apart from synthetic assets, the agreement has actively developed and designed Perps V2, which is a low-cost chain futures transaction based on speculation outside the chain and Synthetix V3, which will lead to the realization of unapproved derivative transaction agreements.

Why does SNX rally?

Although the fundamentals of the 2021 agreement are strong and prosperous, today's increase is generally driven by the comprehensive recovery of the cryptocurrency market. According to the daily curve of SNX, the asset successfully broke through the local friction resistance level presented by the 50 day daily average.

Moving closer to the next friction resistance of about $0.00012 is undoubtedly SNX's next logical overall goal. Unfortunately, the future development of SNX depends entirely on the overall situation of the market.

In the recent notice, SNX released a curve chart improvement proposal, which will significantly reduce the cost of rescheduling and increase the total number of trading routes according to SNX, which will have a positive effect on the agreement revenue and promote the rise in the price of tokens in the market.