Synthetix V3 development - All about the debt pool
Synthetix will soon roll out its V3 feature. SNX was confronted with resistance when the bears attempted an attack. Since January 2023, the crypto market has shown a healthy recovery. There has been an increase in activity in DeFi.
Since January 2023, the crypto market has seen a healthy recovery. This has led to increased activity in DeFi. Synthetix is one of the companies that has been able to capitalize on this recovery. The latest weekly update from Synthetix may give some insight into what users can expect for this month.
According to the update Synthetix is on track for launching its V3 feature. It will result in major changes to the debt pool that will support unique elements. One pool will be used to host the legacy market, which will include all existing V2X offerings.
There was more to the weekly update, of course. SIP-255 will allow debt migration to begin. This is currently in its final review stage. Once rolled out, it will allow fee burning, not distribution.
During the last four weeks, network growth was strong. It was also quite volatile due to periods of low activity or low volatility. At press time, the network growth metric had fallen to a low of four months.
Despite the surge in daily active addresses the 30-day MVRV ratio did not fall during the last 24 hour. This indicated that bullish demand was outweighing sell pressure. This was reflected in SNX's bearish performance of 3 February following the previous rally that tried to push past Janaury 20,23's previous peak.
It was not clear if the recent developments in press time would support a surge of demand for SNX. The current market conditions indicate that there is not enough bullish pressure to overcome current resistance.
Michael is a full time journalist at AMBCrypto. He has five years of experience in finance, forex, and more than two decades as a writer in crypto and blockchain segments. AMBCrypto's writing focuses primarily on technical analysis and news about cryptocurrency markets. His hobbies include exotic cars and motorcycles.