- Synthetix’s development activity underscores the network’s growing efforts to attract more users
- SNX’s bearish performance, however, is fueled by whales and institutional selling pressure
Synthetix has been one of the most promising crypto projects during the 2021 bull run. However, it has been struggling to stay in the spotlight since the DeFi segment has become increasingly saturated. Similarly, its native token SNX has also been on a downward spiral lately.
Can Synthetix make a comeback? Well, this DeFi protocol has been fighting an uphill battle to maintain its relevance. Consider this: Synthetix has recently seen a lot of development activity, which has led to it being ranked as the top DeFi protocol in terms of DA over the last 30 days.
A precursor to a big movement for SNX?
The aforementioned surge could be related to some of the project’s latest announcements. The protocol recently announced a new protocol integration called TLX that enables leveraged trading. In fact, TLX announced just two days ago that it had reached over $400 million worth of leveraged tokens traded.
Synthetix is also reportedly working on a new perp integrator. These observations suggest the possibility of increased demand for SNX within the Synthetix ecosystem.
SNX has been on a bearish trajectory for nearly 5 months. Its price of $1.29 at press time represented a 75% discount from $5.28 – its YTD high reached in March.
Source: TradingView
SNX price at press time appeared to be below its price levels during its previous bearish phases. Hence the question: can it bounce back? Well, on-chain data has revealed some interesting findings regarding the SNX token.
Whales and addresses and others…
At the time of writing, approximately 98% of all addresses holding SNX were in loss, while only 0.76% were in the money. This suggests that there was very little accumulation at or below the price at press time. This is consistent with the balance by holding duration which revealed that the number of HODLers has dropped by 37,830,000 SNX over the last 8 months.
Source: IntoTheBlock
The number of SNX traders has increased over the past two months, indicating a preference for short-term price gains. As a result, SNX has not been able to maintain a decent uptrend. At the same time, ownership statistics have revealed that whales have contributed to the selling pressure over the past 30 days.
Whale addresses’ balances have dropped by around 7.3 million SNX over the past 4 weeks. Investor addresses have dropped by 7.78 million coins over the same period. However, retail addresses have seen a positive growth of around 490,000 SNX.
Source: IntoTheBlock
The acquisition by retail shareholders has hinted at a possible change in sentiment.
However, retail buyers may not have much impact on the market. SNX may remain subdued unless we see a shift in whale and investor holdings in favor of accumulation.
