Synthetix price is up by more than 30% in 24 hours, but not because of XRP or Ripple hype
- Synthetix price is currently trading at $2.73, marking a three-month high.
- Synthetix on Friday launched a new decentralized perpetual contract trading platform, Infinex, to compete directly with CEXs.
- SNX holders’ depositing has seen a nearly 400% growth, which suggests that there could be a rise in short-term sell pressure.
Synthetix price enjoyed immense gains on Friday, with the market still celebrating the outcome of the Securities and Exchange Commission vs Ripple lawsuit. However, Synthetix stood apart from the crowd as it rallied for something more crucial to the core of the network, furthering its development.
Synthetix price rallies after new platform launch
Synthetix price, trading at $2.73 at the time of writing, rose by more than 33% in the span of 24 hours. During the intra-day trading hours, the altcoin even managed to hit a high of nearly 61%, breaching the $3 mark but failing to sustain a rise above it.
SNX/USD 1-day chart
The reason behind the rally had the influence of the SEC vs. Ripple outcome, where XRP was declared to not be a security, except for in the case where it was being sold to institutional investors. Nevertheless, the core reason behind the rally was the launch of Infinex.
Developed to be a decentralized perpetual contract trading platform, the goal of Infinex is to build a sustainable platform that can compete directly with the Centralized Exchanges (CEXs). Infinex would also be dealing with the main decentralized exchanges (DEXs) issues, including high slippage / low liquidity, high fees and high market risk for Liquidity Providers (LPs), in addition to removing the need to sign every action.
While it is being touted as a direct competition to CEXs, the issue still remains user acquisition since front-end platforms already exist in the market, it is the user count that has not grown. Thus to be able to go toe to toe with centralized exchange platforms such DEXs would need the support of the investors.
This support seems shaky right now, either be it due to the sudden rally or general market caution, but Synthetix has seen a significant rise in the active deposits on the network. Over the past day, the daily average SNX deposits have shot up by almost 400%. This is an indication that there is a strong possibility of a rise in short-term sell pressure.
 [20.41.49, 14 Jul, 2023]-638249747935424064.png)
Synthetix active deposits
This could impact the Synthetix price, potentially eroding the gains it made in the last couple of hours.
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Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
