Synthetix (SNX) became one of the hottest cryptocurrencies for the Decentralized Finance (DeFi) market. The virtual currency has been massively growing in the last few months and it was able to reach the highest price ever recorded a few days ago. Now, Weiss Ratings is bullish about the future of SNX and they are giving some reasons why they are long in this virtual currency.
Weiss Ratings Bullish on Synthetix (SNX)
The independent and recognized rating agency Weiss Ratings is bullish on Synthetix and its future. The company has released a report on why they are bullish on this virtual currency and which are the main use cases of this digital asset.
The authors of the report, Juan Villaverde and Bruce Ng, explain that the Decentralized Finance market is growing like crazy. Indeed, we can see that there are several services being provided by DeFi firms and companies. Some of these services include lending, borrowing and trading, among other things.
Synthetix expanded as a decentralized exchange where users can simply exchange their assets for lower fees and fast transaction times. When traders use traditional centralized platforms, intermediaries and transaction fees tend to be very high.
With Synthetix, things become much easier for users. Traders can exchange assets in an easy way with other users they do not know in a decentralized way and without trusting the other party. This is everything going to be done through blockchain technology.
Weiss Rating considers that there are three key reasons to be bullish about Synthetix. The first reason is related to its meteoric growth. Synthetix was able to offer better, faster and cheaper services to users than traditional centralized companies and financial platforms. This allowed the virtual currency to surge towards $7,20 per coin and have a market cap of $585 million.
Meanwhile, staking rewards have also attracted a large number of users. 0.3% of every trade that takes place on the network goes into a sUSD fee pool. These funds are then distributed to SNX coin holders according to the stake they use. This is also helping the cryptocurrency move higher.
Finally, futures and leveraged trading are also very useful for traders that want to have a larger exposure to the financial markets.
Weiss Ratings considers that the price of SNX could triple by year end, and this is a conservative estimation according to the official report released by the company.