About Synthetix (SNX)
Synthetix is a decentralised synthetic asset issuance protocol and trading platform running on the Ethereum blockchain; SNX is the platform’s native coin.
Founded in 2017, Synthetix leverages a smart contract infrastructure to facilitate the creation/exchange of synthetic assets, or “synths.”
The protocol’s decentralised nature allows traders to gain exposure to everything from fiat currencies to precious metals without ever having to go through a traditional – centralised, toll collecting – financial intermediary.
Synths are the platform’s backbone. They’re ERC-20 tokens pegged to the value of a specific asset to which traders gain exposure but without actually owning the underlying asset. Synths are created (“minted”) via users staking SNX (or ETH) as collateral to one of the protocol’s smart contracts. The amount of SNX required to be staked as collateral is stipulated by the contract.
Once SNX or ETH is staked as collateral, a specific amount of the desired synthetic asset is minted and denominated with a lower case “s.” (One example: “GLDs.”)
The amount of SNX of ETH posted must remain at or above 750% of the value of the synth created so that, for instance, a gold-exposure-seeker who posted $1,000 dollars worth of SNX collateral could only receive at most $133 worth of sGLD.
What is the price of SNX?
As of late January 2021, SNX was trading at around $17, up nearly 100% just since the start of the year. The rally has seen the token’s 24-hour volume more than double since December; the current daily trading volume totals approximately $289 million.
SNX is one of the more heavily traded currencies on the market. There are currently over 144 million SNX in circulation, giving the coin a market cap of $1.8 billion. It’s among the top 25 largest cryptos by cap, as measured by CoinGecko.
SNX’s late December and January rally is due in part to the ever-increasing value of funds locked onto the platform. The month of December saw SNX’s total TVL rise over 50% from just under $800 million to over $1.2 billion by the end of the month.
The significant increase in synthetic assets trading on the platform bodes well for the token’s long-term price, which is linked to the protocol’s trading volume by way of increased returns for those engaging in staking activities.
How to buy Synthetix (SNX)
With Uphold, you can set up an account, verify your identity and buy crypto with ease.
Here is how:
1. Go to Uphold.com and click ‘Sign up’
2. Enter your email address, phone number and your personal details
3. Tell us how you plan to use Uphold and provide some basic financial information (e.g., employment status and source of funds)
4. Verify your identity by providing an ID document and taking a ‘selfie’
… and you’re off to the races!
Just start trading.
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This content is correct as of September 2021
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