- The P/S ratio rose while the total value locked up on SNX declined.
- OTC supply increased, but key indicators looked bearish.
Synthetics [SNX] witnessed a major spike in Perps V2 exchange as its daily volume reached $100 million. This indicates an increased number of investors on the network, as crypto traders often use permanent contracts to earn passive income through funding fees.
$100 million daily volume for Synthetix Perps.
Kudos to the interfaces that integrate with Perps to make all of this possible.
— Synthetix ⚔️ (@synthetix_io) March 9, 2023
Realistic or not, here it is SNX market cap in BTC’s conditions
Summary of Synthetix Perps V2
Synthetix launched Perp v2 last year, which significantly reduced fees, improved scalability, capital efficiency and, most importantly, merchant satisfaction.
According to the official message, Synthetix Perps V2 has reduced perps trading fees to just 5–10 basis points, a significant reduction from Perps V1, while maintaining optimal performance and execution efficiency. The ETH-PERP market became available when the Synthetix Perps V2 off-chain oracles launched.
However SNX Preps v2 volume registered huge interest, network P/S ratio increased.
The P/S ratio is a metric used to determine whether an asset is undervalued or overvalued. Therefore, the possibility of a correction in the price of the token arises, which may lead to a decline in investor interest.
Not only that, but the ongoing bear market also played a role in the SNX price decline. According to CoinMarketCapthe value of SNX has decreased 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 drop also negatively impacted the value of the network as its TVL declined down after constant growth.
Is investor interest in SNX waning?
Although SNXprice fell victim to bearish moves, investor interest in SNX increased.
Consider this – the supply of SNX on the exchanges has seen a decline. However, its OTC supply rose, which was generally a bullish signal.
of CryptoQuant data further revealed that the exchange reserve of SNX is decreasing. Thus revealing that the token has not been under selling pressure despite the steep price drop.
How many 1,10,100 SNXs is it worth today?
Meanwhile, network performance on the chain has raised several concerns. Thanks to falling prices, SNXThe MVRV ratio decreased significantly.
The web’s social dominance has also declined, reflecting its reduced popularity. Furthermore, the growth of the SNX network has also decreased.
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