Synthetix (SNX) Price Prediction

Deep Dive

1. Trading Competition & Adoption (Bullish/Mixed)

Overview: Synthetix’s ongoing $1M trading competition (Oct 20–Nov 7, 2025) requires participants to stake SNX to mint sUSD, directly increasing buy pressure. Past events triggered 130% rallies but led to 15-20% corrections post-completion due to profit-taking.

What this means: Short-term demand spikes are likely, but sustaining gains depends on retaining traders post-competition. Success could cement SNX as a top perp DEX token, while failure may deepen skepticism.

2. sUSD Stability & Collateral Health (Bearish Risk)

Overview: Synthetix’s sUSD lost its $1 peg in April 2025, dropping to $0.68 after a governance update (CCN). While stabilized at $0.80, SNX’s role as primary collateral ties its price to sUSD confidence.

What this means: Another depeg could trigger mass SNX liquidations, as seen in April’s 26% monthly drop. Protocol adjustments to collateral ratios or diversification (e.g., adding wstETH) might mitigate this.

3. Ethereum Mainnet Relaunch (Mixed Impact)

Overview: Synthetix abandoned L2s in June 2025 to refocus on Ethereum mainnet, aiming to leverage its liquidity and security. However, fragmented L2 liquidity previously caused a 83% SNX drop.

What this means: Success hinges on attracting deep liquidity and CEX-like speed. Failure risks repeating past TVL declines, while success could revive SNX’s role in DeFi’s “dino coin” narrative.

Conclusion

SNX’s price will swing on competition-driven demand, sUSD stability, and Ethereum execution. Traders should watch sUSD’s peg and post-competition retention rates. Can Synthetix’s “back to basics” pivot defy DeFi’s high-risk reputation, or will collateral risks overshadow its comeback?