Synthetix price shows continued strength as SNX supply on exchanges drops


  • Synthetix supply on exchanges declined to 2.59% on Monday, likely reducing selling pressure on SNX. 
  • SNX price rallied nearly 12% in the past week. 
  • The Synthetix ecosystem has updates lined up for the entire stack of the protocol. 

Synthetix, a decentralized asset issuance protocol, is used for staking rewards and community voting. The token yielded nearly 17% weekly gains for holders, and on-chain metrics point to a continued bullish outlook for SNX.

Also read: Pro-XRP attorney slams former SEC Chair, XRP price plummets in market wide crash

Retail traders buy SNX, whales sell it  

Based on data from on-chain intelligence tracker Santiment, retail investors are buying SNX tokens when the token’s supply on exchanges has declined and remains at low levels. The combination of these two factors is generally bullish for the asset’s price as it implies reduced selling pressure across crypto exchange platforms. 

Investors who hold between 100 and 1,000 SNX tokens, and between 1,000 and 10,000 SNX tokens, have consistently added to their portfolios since November 20. In the same timeframe, large wallet holders (with 10,000 to 100,000 SNX, and with 100,000 to 1 million SNX) have sold their holdings, reducing their exposure to the asset. 

The accumulation by the smaller retail cohort supports the theory of consistent SNX price gains. In a retail driven rally, typically, gains are likely sustainable.

SNX network token

SNX holdings of different cohorts. Source: Santiment

Synthetix’s supply on exhanges has remained at low levels for the last four months. However, it has declined from  2.92% on November 20 to 2.59% on Monday. SNX price rallied alongside dwindling exchange supply. 
SNX token

SNX Supply on exchanges (as % of total supply) and price. Source: Santiment 

Updates lined up in SNX ecosystem

There are several upgrades lined up for the entire stack of Synthetix protocol. Synthetix V3 is launching on Coinbase’s Layer 2 chain in an attempt to expand the chain. The Synthetix team is working on a new frontend for launching on Base, with the objective to compete with the trading experience for users on centralized exchanges.

Half of the revenue generated on Synthetix after its rollout on the Base chain will be distributed to SNX holders through a buy-and-burn mechanism. In the past 90 days, the protocol has collected $8.2 million in fees.

At the time of writing, SNX price is $4.537, up nearly 4% on the day. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP