- Synthetix's market cap hits a new all-time high, surpassing all other DeFi projects.
- Maker leads DeFi tokens as per the total value locked according to DeFi Pulse.
- Synthetix price aims for $20, but a sell signal is likely to come into the picture and delay the breakout.
Synthetix (SNX) has gradually grown to become the largest decentralized finance (DeFi) token despite the bearish wave across the cryptocurrency market in the last few days. The pioneer digital asset, Bitcoin, is struggling to reverse the trend and perhaps avoid losses under $30,000. Meanwhile, SNX's market capitalization soared to $1.7 billion, claiming DeFi's top spot.
Synthetic rises above Aave and Uniswap by market capitalization
Unlike the larger cryptocurrency market, the DeFi sector is very competitive, whereas Bitcoin has remained in the reigns since the beginning. According to the data by CoinMarketCap, Synthetix's market cap has recently hit a new all-time high at $1.7 billion.
This token now ranks first among DeFi projects, after surpassing assets such as Aave (AAVE) and Uniswap (UNI). Aave's market capitalization currently stands at $1.55 billion, while Uniswap has a $1.52 billion market value. Other top DeFi tokens are Maker with $1.47 billion and Yearn.Finance with $882 billion.
Top five DeFi tokens
Despite Synthetix making it to the top due to its ballooning market cap, it still lags regarding the value locked on the platform. DeFi Pulse highlights that a total of $19.9 billion has been locked in the sector.
Maker tops this list with $3.6 billion, followed by Aave with $2.5 billion. Uniswap boasts of $2.4 billion ahead of Compound's $2.3 billion. Synthetix comes in the fifth position with a total of $2.2 billion in locked funds.
DeFi top ten projects by total value locked
Synthetix unstoppable uptrend eyes $20
SNX is trading within the confines of an ascending parallel channel, as observed on the 4-hour chart. The token's value has increased by 550% since the lows changed in November at $2.4. At the time of writing, Synthetix is exchanging hands at $15.5 while battling for another breakout above the channel's upper boundary.
The Relative Strength Index has reinforced the ongoing bullish momentum as it renews the uptrend within the overbought area. Moreover, a golden cross pattern formed in December when the 50 Simple Moving Average crossed above the 100 SMA appears to influence the price positively.
SNX/USD 4-hour chart
On the upside, buyers have eyes on $20, but SNX is likely to face some delays around $16 and $18. Besides, a sell signal could soon be presented by the TD Sequential indicator on the 4-hour chart. This call to sell will manifest in a green nine candlestick. If validated, SNX would correct from the current price levels in one to four daily candlesticks.
SNX/USD 4-hour chart
Synthetix price could also fall if the movement is limited to under $16. Moreover, overhead pressure is likely to rise and probably force the token under $15, a move that could call for more sell orders. On the downside, support is expected at the 50 SMA and the 100 SMA, respectively.
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
Editors’ Picks
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.
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.
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.
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.
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.
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.