- Synthetix’s volume decreased in Q4 2022 but its daily active users increased.
- In fact, SNX’s inflation rate reached 10% on an annualized basis.
Messari recently published Synthetix’s [SNX] 2022 quarter 4 report, which highlighted its performance on several fronts during the concluding months of 2022.
While a few of the updates were in Synthetix’s favor, some were against the network. For instance, user growth increased during the year, probably as a result of Optimism Quest, while volumes and the debt pool decreased.
State of @synthetix_io Q4 2022 is LIVE.
— Messari (@MessariCrypto) February 9, 2023
How much are 1,10,100 SNXs worth today
This is how Synthetix performed
Synthetix’s volume peaked in Q3 2022, led by atomic swaps. However, following some initial success, the program was scaled back to control toxic flow.
This resulted in a massive drop of 87% in the last quarter of 2022. Synthetix’s inflation rate spiked considerably during the early months of 2022, but in Q4 it reached below 10% on an annualized basis.
In Q2 and Q3 of 2023, respectively, 24 million and 23 million SNX will be released due to the increase in the inflation rate in the middle of the year.
Interestingly, despite the drop in volume, SNX’s stats for daily active users looked quite optimistic for the network. As per the data, the token’s daily active users increased considerably during the fourth quarter of 2022.
Moreover, Synthetix launched Perps V2 on 20 December, beginning with just an ETH perp option. Synthetix Perps V2 is a protocol for trading perpetual futures leveraging the Synthetix protocol’s liquidity.
The introduction has so far been a success, with lower fees and significant adoption of more than 35% of perps volume in January 2023.
Another major update was in 2023, the Synthetix DAO will be primarily focused on the launch of Synthetix V3, which is an updated architecture for the liquidity provisioning protocol.
The transition will involve migrating from sUSD to snxUSD and converting the current V2 protocol into a pool on V3 after the release of V3.
Realistic or not, here’s SNX market cap in BTC’s terms
2023 brought better news
As we entered 2023, SNX’s price rallied considerably, thanks to the bullish market condition. Santiment’s chart revealed that its MVRV Ratio also remained relatively high through the first month.
Not only that, but demand for SNX in the derivatives market was consistent, as its Binance funding rate was up. SNX’s development activity increased significantly in the past 30 days, which by and large is a positive signal for a network.
Moreover, SNX’s popularity registered an increase as its social dominance spiked quite a few times. At press time, SNX was trading at $2.39 with a market capitalization of over $602 million.