SNX Price Prediction as Synthetix Stats Improve

Synthetix price has made a strong recovery in the past few weeks. SNX, its token, has soared to $2.55, the highest point since November 8. The coin has surged by more than 70% from its lowest level in 2022. So, why is Synthetix soaring?

Synthetix usage rises

Synthetix is a useful blockchain project that exists in the trading industry. It is a derivatives protocol that makes it possible for developers to create financial derivatives known as synths. Therefore, developers can create synths of all assets, including stocks and commodities.

Synthetix price has done well in 2023 mostly because of the strong performance of cryptocurrencies. Bitcoin has surged above $21,000 while the total market cap of all digital coins has moved to over $945 billion.

SNX price has soared for several other reasons as well. In a statement, the number of daily active users on Synthetix has jumped sharply. According to The Defiant, daily active users in the network has more than doubled to over 5.8k. This growth happened after Synthetix launched perpetual futures on Optimism.

Perpetual futures are popular financial assets that resemble contracts in the stock and commodities industry. The only difference is that these futures contracts don’t have an expiry date. On the other hand, Optimism is one of the fastest-growing layer 2 networks in the blockchain industry.

Meanwhile, according to Synthetix, atomic swaps in its ecosystem have been in a strong bullish trend in the past few days. They have jumped in top platforms like Curve Finance. This is a sign that the network is doing well.

More so, Synthetix is one of the blockchain networks that is making money. The total SNX fees in the past 24 hours totaled about $21,650, which is higher than the 30-day average of $5,214. These are fees in its layer 1. In layer 2, the 7-day average fees is $51k. This means that total fees in the past 7 days was over $437k.

Synthetix price prediction

Signs of SNX bottom started to emerge in November when the token struggled to move below the support at $1.50. Since then, the coin has managed to move above the resistance point at $2, the highest point on December 5. It has also crossed the 50-day moving average while volume remains at an elevated level. 

Therefore, the token will likely continue rising with the next key resistance point being at $2.80, the highest point on November 5.