• Synthetix’s Perps V2 recently achieved a milestone with its cumulative volume reaching nearly $2 billion and daily volume touching $115 million.
• Market indicators showed signs of recovery, despite the recent bearish metrics.
• However, an address recently transferred 2.66 million SNX to Binance, which was worth over $7.5 million, indicating a potential price drop for SNX in the following days.
Synthetix [SNX] Achieves Milestone
Synthetix revealed in a recent tweet that Perp V2’s cumulative volume reached nearly $2 billion, while its daily volume somewhat touched $115 million. This was a commendable achievement, as only a week ago, Perp V2’s daily volume touched $100 million. Integrators have worked tirelessly to make this possible and cheers to them @Kwenta_io, @PolynomialFi, @DecentrexHQ and @dHedgeOrg for their efforts!
Market Indicators Show Signs of Recovery
Market indicators showed signs of recovery and suggested a price uptick despite bearish metrics. Realistic or not, here’s SNX market cap in BTC terms which could potentially increase with the latest news from Synthetix network.
SNX Fees & Revenue Spike
Thanks to the massive increase in volume, Synthetix’s fees and revenue also spiked over the last few days according to Token Terminal data. As per their report fees and revenue gained upward momentum since 7 March before spiking substantially on 12 March.
Whale Dumps SNX
Unfortunately the same might not be true for Synthetix token SNX due to whale activity that occurred around last week where an address transferred 2.66 million SNX worth over $7.5 million to Binance exchange from their own pocket – suggesting further price drops for SNX in coming days according to Lookonchain analysis team on Twitter post “Maybe he/she already sold $SNX on #Binance”
On-Chain Metrics Suggest Price Drop
On-chain metrics such as Binance funding rate declined considerably which indicates less demand from derivatives market – giving more reasons to worry about SNX’s future price as it had already registered 5% decline at press time trading at around $ 2.80 with total market capitalization above 700 Million USD mark according to CoinGecko data points
• The Silicon Valley Bank run caused fear, uncertainty, and doubt about Bitcoin earlier this week.
• However, the failure of yet another bank may have reversed public opinion and brought back support for the king coin.
• BTC volume has risen to almost a three-month high as transactions go up, while whale and shark accumulation continues despite FUD.
Silicon Valley Bank Run
The California Financial Institutions Control Board closed Silicon Valley Bank, which caused Fear, Uncertainty, and Doubt (FUD) about Bitcoin earlier this week. The FDIC was designated as the receiver to safeguard insured savings, although the reason for the shutdown is unknown. People’s reactions to the SVB failure suggest uncertainty is currently prevalent in the market. Circle announced that over $3 billion of its $40 billion was held by SVB which caused a capital flight of USDC holders exchanging their holdings for other stablecoins and Bitcoin.
Whales & Sharks Step Up Accumulation
Despite FUD that was caused by the Silvergate crash statistics from Santiment reveal that whale and shark accumulation is continuing with addresses with 10-10,000 BTC rising over 67%. On 11 March there was an upswing in whale and shark accumulation coinciding with USDC experiencing a capital flight.
BTC Volume Reaches Almost Three Month High
The volume metric on Santiment revealed an increase in business activity as BTC volume reached 45 billion at 9 a.m UTC on March 11th before reaching 35 billion by 5 p.m UTC on March 11th. This is notable because it is the highest Bitcoin has seen since December with 39 billion being recorded as of this writing.
Bitcoin Outflow Becomes Dominant
As more Bitcoin leaves exchanges USD Coin (USDC) has seen increased swaps suggesting an outflow from USDC to other stablecoins or even Bitcoin itself as investors become wary of holding USDC due to concerns about Silicon Valley Bank going bankrupt in 2023.
After experiencing FUD due to Silicon Valley Bank running earlier this week it seems like public opinion might be reversing in favour of Bitcoin after yet another failed bank causing whales and sharks to step up their accumulation while BTC volumes reach almost 3 month highs signaling an increase in business activity amidst fears that USDC could be impacted due to concerns around its stability following Silicon Valley Banks failure resulting in an outflow from USDC into other stablecoins or even Bitcoin itself
• Ethereum (ETH) has decreased by around 6% in the past three days, with its price at roughly $1,560 as of time of writing.
• The percentage of the overall Ethereum (ETH) supply on exchanges has decreased due to the price decline and is now at its lowest level in nearly five years.
• Exchange Netflow statistic revealed more Ethereum (ETH) outflows than inflows in recent days, indicating that withdrawal activity rather than a sell-off was driving the decrease.
Ethereum Price Decreases
Ethereum (ETH) has decreased by around 6% in the past three days, with its price at roughly $1,560 as of time of writing. Its price movement has fallen below the short Moving Average (yellow line), and resistance was discovered in the $1,600 to $1,700 price range. The Relative Strength Index (RSI) line has dipped just barely below the neutral region turning Ethereum’s trend from bull to bear. Additionally, volume indicators showed low activities.
Exchange Supply Falls
A Santiment report showed that the percentage of overall Ethereum (ETH) supply on exchanges reached its lowest level in nearly five years – making up almost 11% of total supply as of writing. This indicated that fewer people are transferring their holdings to exchanges and instead keeping them in their wallets. Furthermore, CryptoQuant’s Exchange Netflow statistic revealed more Ethereum (ETH) outflows than inflows in recent days indicating withdrawal activity rather than a sell-off was driving the decrease.
Response from Investors
Despite recent swings between highs and lows most investors have responded positively to these movements demonstrating confidence for recovery from recent losses sustained over previous months.
Longterm predictions for ETH remain optimistic with analysts expecting prices to increase significantly by 2023-24 if market conditions remain stable or improve further over time with further development and adoption trends becoming increasingly apparent as digital asset investments become more popular and accepted worldwide..
In conclusion it appears likely that despite current downward trend ETH prices should pick up again soon given current market conditions and active development within this sector showing promise for increased growth potentials ahead which will likely be reflected soon in increasing prices once again over coming weeks or months ahead when combined with investor confidence remaining strong throughout this current downturn period..