What is Synthetix (SNX) crypto? Will it continue rising?

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 What is Synthetix (SNX) crypto? Will it continue rising?
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  • Synthetix is a decentralized synthetic asset issuance protocol.
  • SNX is an Ethereum-based ERC20 standard token.
  • Synthetix (SNX) is the official launch partner of Velodrome, a trading and liquidity marketplace, launching on May 31, 2022.

Synthetix (SNX) is the official launch partner of Velodrome, the trading and liquidity marketplace launching on Tuesday. Velodrome runs on the Optimism Network.

Velodrome plans to airdrop its VELO token for its DeFi members, protocols, and DAOs. The SNX token rose 11.85% to US$3.22 at 4:36 am ET after the Velodrome deal.

Under the partnership, Synthetix will receive Velodrome’s veNFT (1% of initial voting power) and sUSD token, which will be available for trading after the launch of the marketplace.

Optimism is a Layer 2 Ethereum network designed to use Ethereum’s security guarantees while lowering the cost and latency.

What Is Synthetix (SNX)?

Synthetix is a decentralized synthetic asset issuance protocol built on Ethereum and Optimistic Ethereum, a Layer 2 scaling solution. The protocol provides on-chain exposure to cryptos and non-crypto assets, offering users highly liquid synthetic assets (synths). 

Like real-world derivatives, the synths track the underlying assets and provide returns without the need of holding the asset directly.

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The synthetic asset protocol allows users to trade autonomously and exchange synths, stake SNX tokens and get a share of the transaction fees in the form of rewards.

The platform uses Oracles, the smart contract price delivery protocols, to track the underlying assets and eliminate liquidity and slippage issues and the need for third-party facilitators. Synthetix aims to include non-blockchain assets to expand the cryptocurrency space. 

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Kain Warwick launched Synthetix in 2017 under the name Havven (HAV), but after a year, the company rebranded to Synthetix.

Besides being the founder of Synthetix, Warwick is also a non-executive director at the Blueshyft retail network. Earlier, he founded a live auction site, Pounder, exclusive to Australia. Its key team members include CEO Peter McKean, COO Jordan Momtazi, and CTO Justin J. Moses.

Also Read: Why Celsius (CEL) crypto plunged to its lowest level since Sep 2020?

What is Synthetix (SNX) crypto? Will it continue rising?Data Source: coinmarketcap.com

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SNX token:

SNX is an Ethereum-based ERC20 standard token. The tokens are used as collateral for synthetic assets. SNX tokens are locked in a smart contract as collateral when the synths are issued. 

Besides receiving synths, token holders can stake SNX tokens and earn from network fees. The network is secured by a proof-of-stake or PoS consensus.

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SNX has a market capitalization of US$370.32 million. Its circulating supply is 114.84 million, and the total supply is 215.26 million SNXs.

Its 24-hour volume rose 44.37% to US$100.1 million on Tuesday morning.

The crypto exchanges offering SNX tokens include Binance, FTX, OKX, Bybit, CoinTiger, etc. 

Also Read: Why XCAD Network (XCAD) token's trading volume surged over 100%?

Bottom line:

Since its launch, the Synthetix protocol has been using the Optimistic Ethereum mainnet to reduce the network's gas fees and lower oracle latency. However, the token has fallen more than 30% YTD. Hence, investors should apply caution while investing in digital assets.

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