We can expect SNX to deliver more recovery as overall market conditions improve. SNX fell in November to retest June lows.
Synthetix has slowed in its DeFi business in 2022, just as many crypto networks have done during the bear market. Regardless, the network remains committed to its long-term business and this was evident in its latest effort.
Read Synthetix (SNX) Price Forecast 2023-2024
Messari’s recent update takes a look at what Synthetix has been up to. According to the update, the latest development concerns the rollout of the new Synthetix V3 governance module.
The new module will reportedly make it easier for the network to make board decisions with fewer people. This is in response to previous voting challenges Synthetix has faced in the past.
1/ After going through a number of governance iterations, @synthetix_ioThe company’s most recent move, V3 Governance Module (V3GM), has shifted its governance structure to council-based governance.
Let’s take a look at the state of Synthetix Governance.🧵 pic.twitter.com/IPkToaomTF
— Messari (@MessariCrypto) December 13, 2022
The new module will also move the election module to the Optimism FND, a move that is expected to open up more governance strategies. In other words, the V3 governance module will make governance activities much easier for Synthetix. But is this enough to boost investor confidence?
SNX price overview and analysis
We witnessed the fall of SNX during the November crash, resulting in a retest of June lows. It has since shown some more upside since the beginning of the month.
It was trading at $1.89 at the time of writing, meaning that subsequent gains have been contained so far, but will we see a year-end rally?
The organic demand for SNX may help explain why it hasn’t managed to gain much upside so far. The supply of SNX locked-in smart contracts experienced a substantial decrease at the beginning of the month.
Source: GlassnodeSy
The fact that the supply in smart contracts has yet to recover speaks volumes about Synthetix’s current situation. It underscores the lack of sufficient demand, a scenario likely to lead to low investor confidence.
Despite this, the network is seeing a recovery in some areas. For example, the speed was higher in recent days, which indicated that demand was improving.
Source: Glassnode
This increase in speed reflects the increase in the number of active addresses and new addresses in the same period.
And the increase in address activity confirms that demand is gradually recovering. Therefore, these observations can provide insight into what to expect, especially as the market continues to recover.
Source: Glassnode
In conclusion, we can expect SNX to recover more as overall market conditions recover. And the governance update should bring more efficiency in the long run.
This post Synthetix releases V3 governance module update, but is this enough to boost SNX
was published first on https://ambcrypto.com/synthetix-releases-v3-governance-module-update-but-is-this-enough-to-boost-snx/
