The price of Synthetix remained under pressure as the total value of the DeFi ecosystem continued to fall. The SNX token is trading at $2.9, down a few points from this week’s high of $3.48. The total market cap is about $626 million, significantly lower than the all-time high of over $3 billion.
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Falling demand for Synthetix
The decline of the Terra ecosystem has had a very negative impact on the entire DeFi industry. The biggest challenge is that many DeFi users now fear their coins could become worthless in the blink of an eye. That explains why the total value of locked tokens (Total Value Locked) across all DeFi platforms has dropped from over $250 billion to only about $108 billion.
Synthetix Network is a leading player in the DeFi industry. Founded in Australia, the platform helps people launch synthetic assets of all types. These assets include foreign exchange, commodities, and stocks. The platform uses Chainlink oracles to make sure that the asset prices are correct.
Synthetic assets are an important part of the blockchain industry. For one, they allow developers to create platforms with the help of which one can invest in and trade traditional assets in a decentralized format. Some of the most popular synths in the ecosystem include sUSD, sETH, and sBTC.
Synthetix has also recently introduced perpetual futures with Nunki. Perpetual futures are similar to traditional futures contracts, with the difference that they have no expiration date.
Recently, however, demand for these synthetic assets has declined. According to DeFi Llama, the overall value of Synthetix is in a downward spiral with no end in sight. The value has fallen from an all-time high of nearly $3 billion to $529 million.
Synthetix is not alone. ThorChain – an alternative crypto synthetic asset project – has also seen its total value drop from over $531 million in April to $191 million.
Synthetix Price Forecast
It can be seen on the chart that the SNX price has been in a strong downtrend lately. In May, it found strong support at $2.40. This week, the price formed a triple top pattern and fell slightly below the 25-day moving average line.
Therefore, given the declining activity in its network, there is a likelihood that Synthetix price will continue to fall as the bears target the important support at $2.40.
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