What is SNX? The Token Behind Synthetic Trading on Synthetix

SNX is the native utility and staking token of Synthetix, one of the earliest and most influential decentralized finance (DeFi) protocols. Built on Ethereum, Synthetix gives users exposure to synthetic assets—such as cryptocurrencies, commodities, and forex pairs—without having to own the real thing.

Launched in 2018, the protocol has played a foundational role in shaping DeFi’s synthetic asset space, allowing users to mint, stake, and trade assets entirely on-chain.

What Does SNX Do?

At its core, SNX powers everything in the Synthetix ecosystem. It’s what lets users create and interact with “Synths”—synthetic assets that mimic the price of real-world assets.

With SNX, you can:

• Mint synthetic assets: Stake SNX as collateral to generate assets like sUSD, sBTC, or sETH.
  
  
• Earn staking rewards: Support liquidity and earn passive income from protocol fees.
  
  
• Trade with leverage: Use your minted Synths to trade on platforms like Kwenta.
  
  
• Vote in governance: Have a say in how the Synthetix protocol evolves by participating in DAO decisions.
  
  

Why Is SNX a Big Deal?

Synthetix wasn’t just ahead of its time—it helped define the rules for synthetic trading in DeFi before the term “DeFi” even became mainstream.

Here’s why SNX still matters:

• It’s one of the longest-standing DeFi protocols, launched in 2018.
  
  
• It pioneered decentralized synthetic trading long before others entered the space.
  
  
• It brings crypto, forex, and commodities into one on-chain system.
  
  
• It combines staking incentives with decentralized governance for long-term value.
  
  

SNX Supply Snapshot

As of June 16, 2025 (source: CoinMarketCap):

• Total Supply: ~343.8 million SNX
  
  
• Circulating Supply: ~343.4 million SNX
  
  
• Max Supply: ~339.88 million SNX
  
  

The SNX supply isn’t fixed permanently. It can be adjusted based on community governance decisions made through the Synthetix DAO.

How Do Synthetic Assets Work?

Synthetic assets on Synthetix are powered by overcollateralized SNX staking and price feeds from decentralized oracles. When you stake SNX, you’re creating debt in the system and minting Synths that track the price of real-world assets.

You can then trade, transfer, or hold these Synths—all without needing to own or move the actual asset they represent. This allows users to stay on-chain and still gain exposure to things like USD, gold, or even EUR/USD.

Where Can You Trade SNX?

SNX is widely available on major exchanges and decentralized platforms. You can also explore and trade SNX through the Bitazza Global app, alongside 100+ other tokens.

Fun Fact

Before protocols like dYdX, Lyra, and GMX existed, Synthetix was already making on-chain derivatives work. It helped prove that you could trade complex assets on the blockchain without intermediaries.

What Are the Risks?

As with any DeFi project, SNX comes with some things to consider:

1. Smart contract risk: Bugs and vulnerabilities are always possible in code-based systems.
   
   
2. Volatility: SNX’s price can swing sharply, which affects staking performance.
   
   
3. Debt pool exposure: When you mint Synths, your debt can fluctuate based on the global debt pool’s balance.
   
   
4. Growing competition: More DeFi platforms now offer similar functionality, which splits liquidity and users.
   
   

Final Thoughts

SNX isn’t just a token—it’s a pioneer. By bringing synthetic assets to the blockchain, it expanded what’s possible in DeFi. With leverage, staking, and governance built into one ecosystem, SNX gives users powerful tools to access global markets from anywhere in the world.

As synthetic trading continues to evolve, Synthetix and SNX remain a core part of that story.

Want to learn more about different tokens? Check out our blog

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