The performance of the Synthetix (SNX) token has been particularly notable in the recent cryptocurrency market, with its price surging to a new high in nearly 15 months. This article will provide an in-depth analysis of the logic behind the rise of the Synthetix token and explore its upcoming Perps V3 version and its impact on the market.
Perps V3 is coming soon
On November 20, veteran DeFi protocol Synthetix announced that Perps V3 will be released on Base through the Andromeda version. This news undoubtedly injected a shot in the arm into the market. Perps V3 plans to launch a number of new features, including support for multiple types of collateral such as sUSD, sETH, sBTC, etc., simplifying the trading experience with cross-margin for different positions, account-based access for better control and flexibility, and targeting large amounts. Liquidation upgrades including a smarter liquidation process and configuration of partial liquidation delays, as well as allowing developers to choose any on-chain oracle, etc.
The launch of these new features aims to provide infrastructure and liquidity for the rapid creation of on-chain derivatives, and for liquidity providers (LPs) to provide derivatives commodity liquidity and earn rewards. Synthetix announced many months ago that V3 would be launched in the fourth quarter of this year, and launched a voting for the proposal to "deploy V3 to Base", which received a 100% support rate.
Infinex’s debut
It is worth mentioning that the decentralized sustainable exchange Infinex will also be unveiled together with Perps V3. Infinex solves the main friction points of DEX such as high slippage/low liquidity, high fees, and high LP market risk. It can be traded on Optimism and governed using Synthetix’s SNX token, which can bring more users to participate in DeFi. "Missing component".
Synthetix founder Kain Warwick once said: "From a trading perspective, the functions of DeFi are quite close to CeFi. We have liquidity, market, depth, and execution time. But we are still missing a key component."
Synthetix Volume and Revenue: Synthetix stated that the launch of V3 builds on the huge success of V2, which brought a paradigm shift for on-chain perpetuators and built on what is now standard by focusing on risk management and introducing dynamic funding rates and price impact. features, driving Synthetix’s trading volume to over $30 billion and generating tens of millions of dollars in fees for liquidity providers.
According to Token Terminal data, as of November 20, Synthetix’s trading volume reached $36.94 billion, an increase of approximately 209.9% over the past year. Currently, Synthetix generates approximately $51.29 million in annual revenue, with a 202% increase in the past 30 days alone, all of which goes to SNX stakers. According to Dune data, as of November 20, the number of Synthetix pledgers was approximately 60,600, and the total amount of SNX pledged exceeded US$680 million.
The substantial increase in Synthetix's trading volume and revenue is inseparable from the launch of its Synthetix Perps Optimism trading incentive program. In April this year, Synthetix Perps announced the launch of the Optimism incentive program, which will allocate 200,000 OP every week based on trader scores and SNX staking status, with a reward cycle of twenty weeks. In September, Synthetix once again announced that it would extend the program for five weeks, distributing 100,000 OP every week, and distributing a total of 500,000 OP. The reward will be capped at the total cost incurred. Thanks to most of the handling fees being covered, the subsidy reward program has greatly stimulated the growth of Synthetix Perps transaction volume.
Performance of Synthetix Perps V2
According to Dune data, the daily trading volume of Synthetix Perps V2 in the past month has reached a maximum of nearly 480 million U.S. dollars, but most of it was contributed by the derivatives trading platform Kwenta. However, with the end of the incentive plan, Perps V2 transaction volume has also declined significantly. As of November 20, its daily trading volume was approximately US$23 million.
Judging from indicators such as transaction volume and revenue, Synthetix is comparable to competing products such as GMX, but the number of active users is far behind GMX and dydx.
Market Performance of SNX Token
In addition, Token Terminal data shows that the token SNX has also performed well in the secondary market, with its price and trading volume increasing by approximately 83% and 152.4% respectively in the past 30 days. In the past 24 hours alone, the transaction amount of SNX reached US$180 million, and the price once hit a new high since September last year.
However, according to data from on-chain analysis platform Santiment, as of November 20, Synthetix’s DAA price was -24.08%. Generally speaking, when the DAA divergence drops below zero, it is a "sell" signal and the asset may be manipulated by a whale. In the past 24 hours, the number of SNX whale transactions worth at least $100,000 surged from 3 to 10.
in conclusion
Overall, various factors such as the upcoming launch of V3, incentive plans, and staking dividends are stimulating the price increase of SNX. With the launch of Perps V3 and the debut of Infinex, Synthetix will further consolidate its position in the DeFi market and provide users with a better trading experience. In the future, whether Synthetix can continue to maintain its growth momentum deserves our continued attention.