Weiss Crypto Ratings, which previously predicted the dramatic surge of Chainlink, is making waves again, forecasting that SNX will at least triple by the end of the year!

In June of this year, analysts Bruce Ng and Juan Villaverde from Weiss Crypto Ratings, who had previously predicted a potential 5x surge in the market price of Chainlink, have once again made a prediction in their latest article released yesterday, estimating a conservative 3x increase in SNX by the end of the year.

Decentralized Synthetic Asset Exchange

According to data from DeFi Pulse, in the past three months, the Total Value Locked (TVL) in DeFi platforms has surged from around $900 million to $6.6 billion. This has led to increased attention on decentralized exchanges (DEX). Synthetix (SNX) is a decentralized synthetic asset exchange launched in 2019. Unlike the order book model, Synthetix's trading mechanism relies on the amount of SNX collateral. In simple terms, the more SNX collateralized on Synthetix, the deeper the debt pool, and the more liquidity the platform's synthetic assets have.

One unique aspect of Synthetix is that the traded assets are not physical but indexes. Therefore, platform users can trade not only cryptocurrencies without intermediaries but also index commodities tied to real-world assets such as gold, forex, and stocks. Weiss Crypto Ratings analysts Bruce Ng and Juan Villaverde are very optimistic about Synthetix's development, even suggesting that the platform poses a threat to traditional securities exchanges, brokers, and financial service providers.

Key Reasons for Bullish Outlook on SNX

Specifically, Weiss Crypto Ratings analysts identify three key reasons for being bullish on SNX. The first is the "Future Potential of DeFi." Compared to traditional financial institutions, Synthetix's transactions are faster and cheaper. With DeFi still having significant room for growth, analysts point out that as one of the top DEX platforms in the field, Synthetix is poised to capture a significant market share.

The second reason is the "Cash Flow Returns of SNX Tokens." SNX token holders can provide liquidity to the platform by staking tokens to earn mining rewards (SNX). Additionally, a 0.3% fee is charged on each transaction on Synthetix, and these fees are distributed to SNX token stakers in proportion to their holdings in the sUSD fee pool. Despite the complex staking process on Synthetix for the average person, approximately 80% of the SNX supply is staked on the platform, significantly reducing market circulation and boosting price appreciation.

The final reason is the "Diverse Trading Products." Whether in traditional financial markets or the cryptocurrency market, the derivatives trading market's fund size is far larger than the spot market. For Synthetix, securities, forex, gold, and derivative financial products can all be created and traded on the platform. Weiss Crypto Ratings analysts state:

"Buying SNX is like buying shares of a cryptocurrency exchange with derivative trading markets and high liquidity. Although futures and leverage trading have not yet been launched, binary options started trading on July 1st."

Based on these three points, analysts conservatively estimate that SNX has at least a threefold price increase potential by the end of the year.

"Our prediction of SNX tripling in price by year-end is actually very conservative; in fact, your returns could be even greater."