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[unpaywalled]
@synthetix_io in everyone's portfolio these days, but do the numbers add up?
https://www.theblockcrypto.com/genesis/74350/synthetix-soars-demand-side
[unpaywalled]
@synthetix_io in everyone's portfolio these days, but do the numbers add up?
https://www.theblockcrypto.com/genesis/74350/synthetix-soars-demand-side
[unpaywalled]
a pioneer of liquidity mining, synthetix has successfully bootstrapped supply side
— $630m TVL
— $94m OI
— SNX numba go up and up
— $630m TVL
— $94m OI
— SNX numba go up and up
but (as many open finance projects will soon find out) building out organic demand side is a different task altogether
synthetix exchange, THE key value driver for SNX, has 2.28% market share
synthetix exchange, THE key value driver for SNX, has 2.28% market share
if we (perhaps generously) annualize july volumes, Synthetix falls 46% short of @delphi_digital ‘Bear Case’ 2020 YE volume target ($1.74bn), which produced a present day valuation of *$59.2m*
SNX currently trades at $890m FD mcap
SNX currently trades at $890m FD mcap
no sign of exponential growth on the unique user side (uniques up just 65% between jan-july)
how many ~$1bn companies do you know with ~1,500 unique monthly users?
how many ~$1bn companies do you know with ~1,500 unique monthly users?
further problematic is that Synthetix is increasingly cannibalized by other exchanges — sETH + sUSD saw $163m volume on non-SE exchanges since March (SE did $166m across all pairs)
SNX stakers *do not* earn fees from this volume — need funding rate to monetize OI
SNX stakers *do not* earn fees from this volume — need funding rate to monetize OI
credit due to @synthetix_io team as far as community building, iteration, willingness to experiment etc.
but focus now *has* to shift to building a differentiated product that users actually want
volume/OI still heavily concentrated in blue chips
but focus now *has* to shift to building a differentiated product that users actually want
volume/OI still heavily concentrated in blue chips
plenty more inside — give it a read (and then fight me in the comments if you so please!)
