Since January 2023, the crypto market has shown signs of a robust recovery, which has led to a rise in activity in the DeFi sector. One of the businesses using this comeback is Synthetix. Its most recent weekly update might provide some information about what users can anticipate this month.
The update states that Synthetix is on schedule to release its V3 functionality. The debt pool will undergo some significant alterations as a result, supporting special aspects. One pool will be used for the deployment, which will house a legacy market with all of the products now offered on V2X.
Despite the fact that V3’s initial designs only called for one pool, Synthetix disclosed that things might alter in the future. When that happens, stakers will have access to various pools.
Of course, the weekly update had more information. For instance, debt migration will start following SIP-255. The latter, which is currently undergoing final approval, will permit fee burning rather than distribution once it is implemented.
Over the past few weeks, Synthetix has continued to engage in significant development work. The developments stated above are consistent with this. This does not, however, result in consistent network expansion.
The previous four weeks did see a strengthening in network growth. Due to periods of little network activity or low volatility, it was also extremely volatile. At the time of publication, the network growth measure had reached a four-month low.
However, in the 24 hours before to press time, there was a significant increase in the number of daily active addresses.
Despite this increase in daily active addresses, during the past 24 hours, the 30-day MVRV ratio has declined. This indicated that bearish demand was outpacing sell pressure. This was a result of SNX’s bearish performance on February 3 following the prior rise that aimed to surpass the prior high set in January 2023.
At the time of publication, SNX had fallen from its weekly high of $2.75 to trade at $2.55. This was indicative of a rise in sale pressure that coincided with the decline in relative strength.
It was uncertain whether the events as of press time would support a spike in SNX demand. However, the state of the market suggested that there was not enough strong positive pressure to go beyond the current resistance.