This DeFi project is competing with Traditional Finance…It’s also up 40% in 7 days!

The more people read about cryptocurrencies, the more they learn about traditional concepts being “re-imagined”, in a way enhancing the process for the end-user. The latest projects of the DeFi tokens are revolutionizing the Finance Industry as we know it, putting end-users first and centralized companies to ashes. In this article, we introduce you to an interesting DeFi token that is changing the way we look at Complex Investment Strategies…Meet Synthetix!

Synthetix – Transforming the world of Finance and Investing!

Before we delve deeper into the Token behind Synthetix, it is important to understand what does this blockchain stand for and grasp its main purpose to see if it really has a practical application in our fast-changing world.

In laymen’s terms, Synthetix is a software that allows users to get exposed to trading derivatives. If you don’t know what derivatives are, they are simply complex financial products that allow users to trade assets with the use of contracts, without owning the actual asset, pretty much like CFD trading, but with many more choices and flexibility.

In traditional finance, derivatives are usually used to hedge investment risks or made to benefit immensely from price differences. But they are usually traded on centralized exchanges or over-the-counter brokers. What Synthetix is trying to achieve is replacing those centralized entities with smart contracts, as it operates on Ethereum’s ERC20, hence removing the middlemen parties and aggregating smart contracts. How cool is that!

A wide variety of financial instruments exist within Synthetix, including fiat currencies, cryptocurrencies, commodities, and inverse indexes. In principle, the system can support any asset with a clear price and provides on-chain exposure to an unlimited range of real-world assets. The protocol will enable a variety of trading features including binary options, futures, and more.

Holders of the Synthetix Token (SNX) are rewarded by the fees generated by the entire ecosystem. A nice Goodbye to big centralized entities and their fat pockets!

Synthetix Price – Technical Analysis

When SNX was first introduced on September 17, its initial price was USD 10. Because of traders benefiting from price differences and who were looking to make short-term profits, this token was dumped all the way to USD 4.5 on its first trading day. It later reached a low of USD 2.5 when the cryptocurrency market as a whole was adjusting in prices…tough luck for SNX’s start. It looked like there was a consolidation in prices for about 2 months.

Ever since that low of USD 2.5, the price started to pick up again in tandem with the cryptocurrency market, specifically with BTC’s road to 20k. We can clearly see in figure 2 a nice uptrend channel, hinting at a strong price, potentially reaching USD 10 once again.

The Future of Synthetix

Given its amazing concept, one cannot but consider owning this token for the long term, where the concept comes to life and starts to pick up. Since it also uses the Ethereum blockchain, Synthetix’s future relies heavily on the success of ETH2.0. So far, everything is looking promising, and owning SNX at the current price should be worthwhile, but it’s important to keep a close lookout on the below quick stats:

• SNX current price: USD 6.3
• Stop-Loss area: 4.5
• Year-low: USD 2.5
• Year-high: USD 10
• 7-days performance: +40%
• 10-day performance: +9%
• Rank on Top DeFi Tokens: #8

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Rudy Fares

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