Can Synthetix (SNX) Make a Comeback? Here's What the Data Reveals

Synthetix was one of the most promising crypto projects during the 2021 bull run. However, it has been struggling to stay in the limelight

Despite being one of the most promising crypto projects during the 2021 bull run, Synthetix has had a hard time staying relevant as the DeFi space becomes increasingly saturated. As a result, its native token SNX has also been bearish.

However, Synthetix has been putting up a fight to maintain its relevance. For instance, the protocol saw strong development activity, allowing it to be the top DeFi protocol in terms of DA in the last 30 days.

This surge could be tied to some of the project’s latest announcements. The protocol recently announced a new integrator protocol called TLX which enables leverage trading. In fact, TLX announced just two days ago that it achieved over $400 million in traded leveraged tokens.

Furthermore, Synthetix is reportedly working on a new perps integrator. These observations pointed towards the possibility of more demand for SNX within the Synthetix ecosystem.

SNX made a comeback after 5 months of bearish price action. At press time, it was trading at $1.29, reflecting a 75% discount from $5.28 – Its highest YTD price tag achieved in March. Interestingly, SNX’s press time price was lower than its price levels during its previous bearish phases.

Now, on-chain data revealed some interesting findings regarding the SNX token. Roughly 98% of all addresses holding SNX were at a loss, at the time of writing, while only 0.76% were in the money. This suggested that there was very low accumulation at or below the press time price level.

This aligned with the balance by time held which revealed that the number of HODLers fell by 37,830,000 SNX in the last 8 months. However, the number of SNX traders rose over the last 2 months, indicating a preference for short-term price gains. As a result, SNX has been unable to sustain a decent uptrend.

Meanwhile, ownership stats revealed that whales have been contributing to sell pressure in the last 30 days. The balance in whale addresses dropped by about 7.3 million SNX in the last 4 weeks. Investor addresses tanked by 7.78 million coins during the same period. However, retail addresses registered positive growth by about 490,000 SNX.

The acquisition by retail holders pointed to a possible sentiment shift. However, retail buyers may not have much of an impact in the market. SNX could remain subdued unless we see a shift in whale and investor holdings in favor of accumulation.