Let’s start with the basics. What Is Synthetix? Synthetix is a protocol that allows users to issue synthetic assets on the Ethereum blockchain. The term “synthetic activities” sounds more complicated than it is. They are financial instruments that will allow the trader to track the price of an asset without having to hold the underlying asset. In ERC-20, the technical standard that Ethereum uses for its smart contracts is known as “Synth”.
Thanks to this innovative Synthetix technology, you can trade gold and silver, cryptocurrencies, reverse cryptocurrencies, crypto indices and fiat currencies, all in the form of synthesizers.
Synthetix
uses a native token called Synthethetix Network Token (SNX), which traders use as collateral against user-created Synthetix assets, but more on that later.
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Synthetix Price Forecast for the next 90 days
I love Synthetix. It’s a project that received a lot of attention last year, going from just under $1 to nearly $17, even reaching $26.44 at its peak. And I think this is just the beginning, and there’s still a lot of growth in this market cycle.
At the time of writing, it is only the 65th cryptocurrency by market capitalization and has a lot of potential to move up the ladder. I would say that it is a project that belongs to the top 20, and we could very well achieve it.
Let’s move on to my price forecast. According to my analysis, the total market capitalization of cryptocurrency could reach $5 to $10 trillion in this market cycle. Currently, the SNX dominance is at 0.09% and I see it rising to at least 0.2%. And if that happens, a realistic price forecast depending on the total market capitalization of cryptocurrencies is between $65 and $130. I also considered a bearish scenario where the entire cryptocurrency market only comes in at $3 trillion. SNX, in this case, would only be worth about $40.
I’m very optimistic about the project and I don’t see it crashing anytime soon. The bearish scenario will also double your money if you buy at the current price. Keep in mind that this is only an opinion and not financial advice. You should, of course, always do your research.
The entire cryptocurrency world is on the verge of complete collapse. Bitcoin fell 75% from its all-time high amid broader market declines caused by furious inflation and the US Fed’s rate hikes.
When you add the most recent collapses of huge industry players (FTX, Celsius, Moon etc.) into the equation, the horizon is murky and there will be more blood on the streets of the crypto city.
Investors are selling risky assets and moving to more stable markets. Crypto is still perceived as a very risky game and therefore sell off.
Our algo still sees some green in 2023, especially in the second half of the year. This is reflected in our forecast for 2023.
Right now, Bitcoin needs to find a bottom before we can move in the opposite direction and reverse the trend.
Once Bitcoin settles into the new price range, altcoins will start doing the same – we’ve seen this scenario dozens of times in distant and more recent history.
Our price forecasting model is bearish for the next 90 days with a hint of a bull market straddling quarters from Q1 to Q2. We expect whales and other larger players in the market to finish filling their bags around that time, which will cause a typical and sudden crypto spike.
The fundamentals we evaluate are teams, tokenomics, use case, community, marketing efforts, liquidity and availability of exchange, hype and speculative potential, and some other proprietary factors developed in our crypto lab.
Fundamentals
Use case
As we said, SNX runs on the Ethereum blockchain. Thanks to it, holders can create Synths that are synthetic assets in the form of ERC-20 tokens. These perfectly mimic the respective underlying assets. And to ensure it has the most accurate pricing data, it has secured a partnership with the biggest name in oracle solutions, Chainlink.
What makes Syntetix so attractive to many of its users is that the platform is completely decentralized. This, of course, is not the case with traditional stockbrokers like eToro.
When a user trades Synths, it’s all done in the form of smart resources. The transaction takes place immediately and there is no need for an order book. When a trader trades a token, it is sent to something known in geek language as zero address and is destroyed. The trader, in return, will receive the synthetic asset token he bought and pay a 0.3% fee. But no company keeps the commission as a traditional broker would. Instead, it is sent to a pool and distributed across all SNX stackers.
Now let’s take a look at their native currency, SNX. Users use it to create new synthetic assets. Every time users create a new asset, they set aside 750% of its value in SNX for token staking. The process is such that not all synthesizers traded have coverage, but SNX skeptics often criticize it. Some argue that this is not true decentralization because experts oversee some operations.
Traders should remember that owning a synthetic asset is not the same as owning the underlying asset itself. Although it provides some benefits, for example, you will not receive dividends or airdrops. Or, in the case of cryptocurrencies, you won’t be able to use them as currency, of course.
Tokenomics
The SNX token has undergone significant changes in its tokenomics over the years. It was deflationary, but was changed to an update in March 2019. It introduced the ability for synthesizers to be minted once pointed to encourage users to create more.
Coinage is incentivized primarily by rewarding them through protocol-level inflation. And secondly, as we said before, distributing earnings from the commission by 0.3% weekly.
The update introduced annual inflation of 2.5% starting in September 2023 and a weekly reward decline of 1.25% starting in December 2019. The changes have been approved and processed by the community.
So the maximum supply is now 212,424,133 coins, of which 114,841,533 SNX are in circulation as of February 2021.
Team
The team behind Synthetix has a long experience in the industry. The project was launched in September 2017 and was initially called Havven (HAV).
Founder and non-executive director, Kain Warwick, proved instrumental in the growth of the project. Before founding Synthetix, he had already worked on other businesses and cryptocurrencies.
Peter McKean, the CEO, has worked in the software industry as a manager or programmer for over two decades.
Jordan Momtazi is the COO of Synthetix. He has worked as a business strategist, sales leader and a successful track record in blockchain, crypto and e-commerce projects.
Justin J. Moses, the CTO, served as director of engineering at MongoDB.
The team has proven its expertise over the years. From what I could, the Synthex community loves them. The project is mainly open-source and the community is very active in development, decision on updates and the like.
Community
SNX has a very active community of traders and developers who are passionate about improving and using the platform. As we have already mentioned, Synthetix is an open source project, so the community plays a central role in making decisions in the development of the project.
Users discuss and vote on decisions regarding the platform in the official Synthetix telegram channel with over 7100 community members, the Discord group with over 28000 members, and users of the Synthetix community council can also publish blog posts.
Moreover, SNX is also popular on social media and YouTube. His ticker $SNX is mentioned on Twitter over 70 times a day. And major crypto YouTubers like BitBoy Crypto, whose channel numbers 904,000, often make videos on SNX in their videos.
It’s safe to say that SNX has an active community and a lot of popularity online.
Synthetix Price Prediction 2023
Our forecast model calls for a temporary shift to a bear market in early 2023 before moving to another lead in Q3 and Q4 of 2023.
SNX Price Prediction 2025 – 2030 – 2040
Our forecast model predicts that SNX will reach new highs in 2025:
$3.16
The SNX price in 2030 and 2040 is expected to be a couple of orders of magnitude higher than our 2025 forecast.
How to buy SNX
Step 1:
Buy ETH through an exchange like Coinbase and Kraken if you don’t own any yet.
Step 2:
Register on an exchange that is trading SNX, such as:
- Binance
- OKEx
- Coinbase Pro
- WhiteBIT
- Bithumb
Step 3:
Buy at the desired price, even by setting a limit order.
Step 4:
Open an SNX-compatible wallet account. Some examples are:
- Trust Portfolio
- Atomic wallet
- MyEtherWallet
Step 5:
Once you purchase SNX, transfer it to your wallet.
Summing it all
up
When it comes to altcoins, SNX is one of the most promising options there is. According to my predictions, it could reach incredible heights already in this bull race. And that’s not the only speculation. This project has some great foundations to support it. The creation of synths that mimic real assets that you can trade on their decentralized exchange is extremely interesting.
Other price forecasts may be much more bearish than mine, but I see a lot of potential and growing demand for this project. DeFi is undoubtedly the future. But whatever you do, remember, this is not financial advice. I’m just talking about my opinions on this project. You should not blindly invest in it.
Always do your research. I could be wrong. And if you decide to invest in this project, please trade responsibly and do not invest more than you are willing to lose.
