Bitcoin

The SNX price rose 100% in December. What drives the Synthetix rally?

The price of SNX, the native character of Synthetix, a protocol derived from DeFi, has been gaining weight over the past week and is worth more than $ 7.87 as of December 23rd.

The main catalyst for the rise in SNX was its listing on Coinbase. On December 16, Coinbase officially announced the listing of Aave (AAVE), Bancor (BNT) and Synthetix (SNX).

Other factors include the rapid increase in the total locked value and user interface improvements with the latest software update on December 22nd.

Daily chart of the SNX / USDT (Binance) pair. Source: TradingView.com

Why is user activity increasing massively at Synthetix?

The SNX price rose 100% in December. What drives the Synthetix rally?
The SNX price rose 100% in December. What drives the Synthetix rally?

Synthetix is ​​a protocol that shapes new synthetic assets with cryptocurrencies, as ether (ETH), as security. This allows users to borrow and trade various assets with many cryptocurrencies on a DeFi derivatives platform.

Attendance is another trait that is likely to appeal to users because of its relatively high annual percentage return based on the protocol’s cash flow mechanism. Essentially, Fees that are incurred when trading with Synthetix are charged and distributed to the proportional balance of the SNX staker.

The combination of a Growing interest in Synthetix since joining Coinbase and the general increase in user activity of the platform it has likely sparked the 100% rally since late November.

in the Defipulse.comthat tracks the total value locked in the DeFi ecosystem, Synthetix is ​​now in fifth place behind Uniswap. The Synthetix ecosystem, which grew massively last month, is now worth more than $ 1.2 billion in assets.

Total value locked in Synthetix. Source: Defipulse.com

November 3rd The total locked-in value (TVL) in Synthetix was around $ 421 million, meaning the TVL nearly tripled in less than two months.

Cheap techniques for SNX

Finally, some traders pointed to the favorable technical structure of SNX in November when it was trading around $ 4.

On November 26th, a dealer became known as “Benjamin Blunts” discovered an inverse head and shoulder pattern (IHS).

Since then, The price of SNX more than doubled at the peak of the day on December 23, reaching as high as $ 8.48.

SNX’s ongoing rally is particularly noteworthy as the altcoin market has seen a sharp correction in the past 24 hours following the sharp retreat of XRP.

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