Analysts at crypto ranking firm Weiss Ratings believe that the local token of the decentralized exchange Synthetix, SNX, will triple in value by the end of the year. So what is the reason behind this idea?
SNX token gained close to 2,000 percent last year
Built on the Ethereum blockchain, Synthetix allows users to invest in stocks, crypto, fiat currencies and commodities through synthetic assets secured by SNX. According to CoinGecko, SNX tokens have increased by 64.6% in the last 30 days and 1,961% last year. At the time of this article, SNX is trading at $6.38. This means an increase of almost 9 percent in the last 24 hours.
Weiss analysts also state that they believe SNX still has a lot of room to grow. Although decentralized finance (DeFi) platforms such as Synthetix boomed last month, they represent less than a tenth of all smart contract platforms worth almost $ 50 billion.
Weiss analysts also think the token’s staking rewards will increase in value.
The price can increase even more with the staking model
0.3% of every transaction made on Synthetix goes into an sUSD fee pool distributed to SNX coin holders in proportion to the size of their shares. Moreover, staked coins are also eligible to receive block rewards. These are additional SNXs created from time to time to increase overall liquidity in Synthetix’s first six years of operation.
Due to these rewards, 70-80% of SNX tokens are staked, which removes them from circulating supply. The value then increases automatically in theory.
By the way, the world’s most expensive digital asset is no longer bitcoin. So which one? The answer is here.