Synthetix Network Token (SNX), the original token for Synthetix – a decentralized financial derivative protocol – has increased over the past week and is now worth over $ 7.87 per share. December 23rd.
The primary catalyst behind SNX has been a listing on Coinbase. On December 16, officially Coinbase announced the overview of the AAV protocol AAVE token, Bancor Network Token (BNT) and Synthetix Network Token.
Other factors include rapid increase in total value locked and improvements to the user interface via the latest software upgrade on December 22nd.
Why is Synthetix seeing a massive increase in user activity?
Synthetix is a protocol that announces new synthetic assets with cryptocurrencies, such as Ether (ETH), as security. This allows users to borrow and trade various assets with many cryptocurrencies on a DeFi derivative platform.
Stake is another feature that is likely to attract users because of its relatively high annual percentage return based on the protocol’s cash flow mechanism. In essence, the fees arising from trading on Synthetix are charged and distributed pro rata to SNX players.
The combination of an increase in interest in Synthetix from the Coinbase list and the platform’s overall increase in user activity probably triggered the 100% rally since the end of November.
According to DeFi Pulse, which tracks the total value locked into the DeFi ecosystem, Synthetix is now in fifth place just behind Uniswap. Over 1.2 billion Dollars worth of assets are now locked in or placed in the Synthetix ecosystem, releasing massive growth over the past month.
On November 3, the total locked-in value (TVL) in Synthetix was around $ 421 million, meaning that TVL has almost tripled in less than two months.
Favorable technical data for SNX
Finally, some traders pointed to the favorable technical structure for SNX in November, when it traded at around $ 4.
On November 26, a pseudonymous dealer known as “Benjamin Blunts” discovered an inverse head-and-shoulders (IHS) bottom pattern. He said:
Textbook IHS, formed at $ snx, 0.618 wicked all stops under support were taken out and stop hunting plus all volume is in right shoulder, which is EXACTLY what I want to see in an IHS bottom, was scared today, but I dipping my toes back in and long targeting 80-100% higher. ”
Since then, the price of the SNX has more than doubled at today’s high on December 23, reaching as high as $ 8.48.
SNX’s ongoing rally is particularly notable because the altcoin market has suffered a steep correction over the last 24 hours after XRP’s sharp retreat.