Synthetix Price

What Is Synthetix (SNX)?

SNX is an ERC-20 token of Synthetix, an Ethereum (ETH)-based decentralized finance (DeFi) protocol that specializes in issuing synthetic assets called synths. 

Synthetic assets are a form of derivative crypto assets. The synths track the price of popular fiat currencies or cryptocurrencies. By providing collateral in the SNX token, the platform’s native crypto, you can mint and then trade synths based on fiat currencies, such as USD, EUR, JPY, AUD and CHF, and crypto coins or tokens, such as BTC, ETH, SOL, AAVE and DOT. Synths follow a naming convention with the prefix “s” added to the ticker of the asset they are derived from, e.g., the synth for BTC is sBTC, and the synth for USD is sUSD.

The platform tracks and updates the prices of synths via a system of Chainlink Oracles. The Synthetix platform itself is largely used for the issuance of synths. The assets may then be traded on the Ethereum-based decentralized exchange (DEX) protocol Kwenta. Kwenta was launched as a project owned by Synthetix, but by mid-2022, it had evolved into an independent platform of its own.

Synthetix (SNX) Price

SNX started trading in March 2018 at around $0.50 under the brand name Haaven (HAV) before rebranding to Synthetix on Nov 30, 2018. Despite its rebranding, until November 2019, the token stayed below the $1 mark. Between November 2019 and February 2020, SNX managed to rise just above $1. After sliding below $1 in mid-February 2020, the token again stayed in that territory until June 2020. The second half of 2020 and early 2021 proved to be the token’s best time on the market.

From a rate of under $1 in June 2020, SNX rose to its all-time high of $28.53 on Feb 14, 2021. Unfortunately for Synthetix, the token then entered an extended downtrend that went on for 16 months. Despite experiencing some short-term upswings along the way, SNX had declined to less than $2 by December 2022. SNX is seeing a relatively brighter start in 2023, with its price rising above $2.50 by February. 

What Is SNX Used For?

The SNX token is used primarily for staking and governance. Providing SNX as collateral for synths is called staking in the platform’s terminology. Staking, in addition to the issuance of synths, lets you earn rewards in SNX and sUSD, one of the most popular synths used on Synthetix. In order to stake, you will first need to transfer your funds from the Ethereum mainnet to the Optimistic Bridge, a Layer 2 solution that supports SNX staking.

Governance is another key function of the SNX token. Synthetix is governed by a combination of decentralized autonomous organizations (DAOs). One element of this governance mechanism is the DAO election process during which council representatives are elected by SNX stakers. 

SNX Tokenomics

SNX is an inflationary token with an initial total supply of 100,000,000. It had an initial annual inflation of 75% APR starting from Mar 13, 2019 that decreases at a rate of 1.25% per week, with a final 2.5% APR annual inflation fixed on Sep 6, 2023. SNX has the following supply distribution shares:

• 60% – Investors and Token Sales

• 3% – Bounties and Marketing Incentives

• 5% – Partnerships

• 12% – Foundation

• 20% – Team and Advisors

Who Is the Founder of Synthetix? 

Synthetix was founded by Australian technology entrepreneur Kain Warwick.

Read more: Synthetix Network Token: What Is SNX in Crypto?

How to Store SNX

Wallets that may be used to store SNX tokens include MetaMask, Atomic Wallet, Trust Wallet, Ledger, and Trezor, to name a few.

Where To Buy SNX

You can buy SNX from any top crypto exchange, including Bybit. On Bybit, you can trade SNX as a USDT Spot pair (SNX/USDT) or as a USDT perpetual (SNXUSDT).