The Synthetix price has been under pressure in the past few months. SNX is trading at $9.8493, where it has been in the past few days. The price is about 66% below its all-time high. Its market capitalization has dropped to more than $1.1 billion making. Notably, its ranking has dropped below 100 for the first time in months.
What happened? At its peak, Synthetix was one of the biggest blockchain platforms in the world. It was among the top 50. Recently, however, fortunes have changed and it has declined sharply in crypto rankings.
For starters, Synthetix is a blockchain platform in the decentralized finance (DeFi) industry. The network enables people to build their own synthetic assets. The synths are then voted by the community members. Some of the most popular synthetic assets in its platform are sTSLA, sUSD, and sEUR. These assets are then incorporated in key DeFi platforms like Uniswap, where they can be traded.
The Synthetix price has declined partly because of the regulatory challenges in the industry. At the same time, the volume of synths that are traded on a daily basis has declined sharply. For example, a few months ago, Synthetix had a total value locked (TVL) of more than $1 billion. Today, this figure has dropped to about $755 million.
Synthetix price prediction
Turning to the daily chart, we see that the Synthetix price has dropped sharply in the past few months. It remained about 66% below its all-time high even after some cryptocurrencies like Bitcoin and Ethereum have surged to an all-time high.
A closer look also shows that the coin has formed a small narrow channel that is shown in black. It is also along the 25-day and 50-day MAs. It has also formed a head and shoulders pattern. Therefore, for now, the SNX price will likely keep falling as bears target the key support at $5.5. In the long-term, however, there is a likelihood that Synthetix will come back to life.
