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SNX

Synthetix (SNX) Price Index

$ 4.05 Ƀ 0.00007863
  • MarketCap
    $ 1,325,986,594
  • Volume
    $ 48,258,575
  • Change
    4.09%
havvenSynthetix Network
$ 4.05
$ 4.05
4.09%
3,74
SNX
Synthetix (SNX)
$ 4.05
SNX
Synthetix (SNX)
author
author
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.
By Marcel Deer
author
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.
on January 08, 2023 | 3 min
Updated on Dec 31, 2023

Overview: What is Synthetix (SNX)?

SNX is the ERC-20 token of the Synthetix protocol, which enables the creation of derivative tokens or synths. These derivative tokens track the value of a real-world asset, such as a stock, currency, or commodity.

Synthetix was initially the Havven stablecoin project, launched by Kain Warwick in 2018, which raised $30 million. The project pivoted shortly after and was rebranded to Synthetix. The SNX token is not a stablecoin.

 

What Makes the Synthetix (SNX) Coin Unique?

Synthetix uses smart contracts on Ethereum, enabling users to create Synth tokens through collateralization. To collateralize an asset, users purchase and lock up SNX. The resulting synth token then tracks the value of its asset with oracles that expose the holder to gains or losses in the respective market. Synths aren’t an actual asset and cannot be redeemed for the asset itself.

 

The synthetic (synth) assets that can be created include commodities like gold and silver, synthetic cryptocurrencies, synthetic inverse cryptocurrencies, synthetic cryptocurrency indexes, and artificial fiat currencies.

 

The platform has several competitors in the cryptocurrency space but is popular and had over $800 million locked on the protocol by 2020. A non-profit foundation governed Synthetix until the summer of 2020, when the foundation was replaced by three decentralized autonomous organizations (DAOs).

 

What Is Synthetix (SNX) Used for?

The Synthetix token is locked up to collateralize assets. Holders of locked-in SNX receive a portion of the fees when synths are traded, and there are also staking rewards on the platform. Holders of SNX can vote on protocol changes and future developments. Moreover, SNX is widely bought and sold on major cryptocurrency exchanges.

 

How Does Synthetix Work?

When a platform user locks in SNX to create synth tokens, the value of the Synthetix tokens must remain above a set percentage of the value of the synths. This is a safeguard known as over-collateralization. If the price of SNX goes up, fewer SNX are needed to guarantee the synths are created and SNX are released so they can be locked up to create new synths. Synths can also be traded on Synthetix DEX and Kwenta and are burned when the new synths are given in exchange.

Synths tokens can be deposited on other DeFi platforms for staking, providing liquidity, and earning interest.

 

How Is the Price of Synthetix (SNX) Determined?

The SNX price is determined by supply and demand and other market factors like sentiment, liquidity, and regulation. It is also influenced by the Synthetix platform’s popularity and competitors’ performance.

 

What Is the Synthetix Coin Price Prediction for 2030?

Although cryptocurrency prices are almost impossible to predict accurately, there are Synthetix price predictions for 2030. Binance believes the SNX price could achieve $5.72 by 2030. CoinCodex, in contrast, forecasts an SNX price between $2.24 and $10.12.

 

How Is the Synthetix (SNX) Network Secured?

SNX is an Ethereum ERC-20 token that takes security from the Ethereum network. The protocol uses Ethereum smart contracts to lock up the tokens to create synths.

 

Where Can You Buy Synthetix?

The SNX token can be bought on major centralized cryptocurrency exchanges, including Binance, OKX, and Coinbase. It can also be purchased on the Uniswap decentralized exchange.

 

How Can You Store Synthetix (SNX)?

Synthetix (SNX) tokens can be stored in an exchange wallet, an Ethereum-compatible hot wallet, or a hardware wallet such as a Ledger device.

 

FAQ

Is Synthetix a good crypto?

The Synthentix token is in the Top 100 cryptocurrencies by market capitalization and is widely traded and used. It has distinct utility in the Synthetix platform, and its long-term future will depend on its success.

 

Who is behind Synthetix?

The founder of the Synthetix platform is Kain Warwick; the platform is governed by three decentralized autonomous organizations (DAOs). Investors in Synthetix include Coinbase Ventures, Framework Ventures, Paradigm, Davao Capital and IOSG.

 

What is the price prediction for SNX crypto 2025?

Most analysts estimate the price could increase to between $8 to $18 per coin by 2025.

 

What are the risks of Synthetix staking?

Staking on Synthetix, like all staking, involves a variety of risks. These include a major change in the staked coin’s value and smart contract and oracle risks. When tokens are staked or locked up, owners won’t be able to unlock them for a period or sell them quickly if the value falls. Other staking risks include slashing and validator risks, bugs, and hacks.

 

Is Synthetix a stablecoin?

Synthetix (SNX) is not a stablecoin. Synthetix was initially launched as a planned stablecoin project called Havven, but the project pivoted and was rebranded.

 

Is SNX an Ethereum token?

SNX is an Ethereum ERC-20 token.

author
About Marcel Deer
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.
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