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Synthetix Perps v2 reaches a new milestone, but here’s the caveat

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Synthetix Perps v2 reaches a new milestone, but here's the caveat

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  • The P/S ratio went up while the total value locked on SNX declined.
  • Supply outside of exchanges increased but the key metrics looked bearish. 

Synthetix [SNX] witnessed a major surge in its Perps V2 exchange as its daily volume reached $100 million. This indicated an increased number of investors in the network, as crypto traders often use perpetual contracts to earn passive income through funding fees.

Realistic or not, here’s SNX market cap in BTC’s terms

Synthetix Perps V2 recap

Synthetix launched Perp v2 last year, which significantly reduced fees, improving scalability, capital efficiency, and, most importantly, trader satisfaction.

As per the official announcement, Synthetix Perps V2 reduced perps trading fees to only 5–10 basis points, a considerable reduction from Perps V1, while maintaining optimal performance and execution efficiency. An ETH-PERP market became available when Synthetix Perps V2 off-chain oracles launched.

Though SNX Preps v2’s volume registered a massive interest, the network’s P/S Ratio increased.

The P/S ratio is a metric that is used to determine whether an asset is undervalued or overvalued. Therefore, a possibility arises of a price correction of the token, which can lead to a decline in investors’ interest. 

Source: Token Terminal

Not only that, but the current bearish market also played a role in pulling SNX’s price down. As per CoinMarketCap, SNX’s value declined by more than 13% in the last 24 hours.

At press time, it was trading at $2.20 with a market capitalization of over $555 million. The price plummet also negatively affected the network’s value as its TVL went down after a consistent uptick. 

Is investors’ interest in SNX declining?

Even though SNX’s price fell victim to the bears’ movements, investors’ interest in SNX  increased.

Consider this- SNX’s supply on exchanges registered a downtick. However, its supply outside of exchanges went up, which by and large was a bullish signal.

CryptoQuant’s data further revealed that SNX’s exchange reserve was decreasing. Thus, revealing that the token was not under selling pressure, despite the price plummet.

Source: Santiment

How much are 1,10,100 SNXs worth today?

Meanwhile, the network’s on-chain performance raised a few concerns. Thanks to the price decline, SNX’s MVRV Ratio declined considerably.

The network’s social dominance also fell, reflecting its decreased popularity. Furthermore, SNX’s network growth also went down.

Source: Santiment


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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