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It’s been a tough past few days for the entire crypto market. Synthetix Network Token (SNX), in particular, has dropped rather hard: the coin is down 5% in the past 24 hours alone and nearly 20% below the local highs.
Despite the drop and widespread range trading seen over the past month, investors are bullish.
Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch
Synthetix Network Token (SNX) Is Being Accumulated En-Masse: Blockchain Data
According to Matt Casto, a crypto-asset analyst working for CMT Digital, there are clear signs that SNX is being accumulated en-masse. He shared on the data he compiled:
“September had the two largest daily quantites of SNX bought on DEXs (9/5 and 9/6) so far this year and was the month with the most SNX acquired. Large holders have been accumulating since July, and large buys posted last month with lower trader counts. Disclosure: I am long SNX.”
September had the two largest daily quantites of SNX bought on DEXs (9/5 and 9/6) so far this year and was the month with the most SNX acquired. Large holders have been accumulating since July, and large buys posted last month with lower trader counts.
Disclosure: I am long SNX pic.twitter.com/9H1QVBS2DN
— Matt (@mcasto_) October 1, 2020
Related Reading: Critical On-Chain Signal Predicts That Bitcoin’s Next Move Will Be Upward
Reasons to Be Excited
SNX holders have reason to be excited.
Over recent weeks, Synthetix has been rolling out a test layer-two scaling solution in collaboration with Optimism.
Optimism is an Ethereum-focused developer group working primarily on a network called Optimistic Ethereum. The network is a second-layer chain that uses a technology called Optimistic Rollups to decrease the cost of transactions while also increasing throughput.
The solution rolled out right now is only a test/beta for retail users that hold one to 2,500 SNX tokens. However, soon, Synthetix is expected to have much of its operations on this scaling solution.
Kain Warwick, the founder of Synthetix, recently commented on Optimistic Ethereum’s prospects:
“Optimistic Ethereum will be the DeFi chain over the next 12-24 months. Nothing is even close. Mainnet is coming and it’s going to melt your fucking faces.
@clembalestrat should have a sneak peak for you all very soon…”
Optimistic Ethereum will be the DeFi chain over the next 12-24 months. Nothing is even close. Mainnet is coming and it’s going to melt your fucking faces. @clembalestrat should have a sneak peak for you all very soon…
— kain.eth (@kaiynne) October 1, 2020
Adding to SNX’s bull trend, there has been an uptick in active addresses as per Santiment:
“SNX has rebounded nicely over the past week (+19.4%). Network activity, such as on-chain circulation and active addresses, indicated a bullish divergence when it dropped to $3.55. Both metrics sustained high levels to allow price to jump back above $5.00.”
Santiment is a blockchain analytics firm that closely tracks top altcoins.
Related Reading: MicroStrategy’s Stock Continues to Soar After Bitcoin Purchase
Featured Image from Shutterstock Price tags: snxusd, snxbtc Charts from TradingView.com Data: Synthetix (SNX) Investors Are Accumulating the Coin In Waves
