DeFi bluechip Synthetix (SNX) is one of the biggest gainers of 2020, with more than 863% YTD.
With a $707 million market cap, SNX is the 40th largest cryptocurrency trading at $6.32.
However, according to the latest report, the DeFi token has a potential to go 364x from here that would take the digital asset’s market cap to a whopping $242 billion, more than 3x of the second-largest cryptocurrency Ethereum’s current market cap at $73 billion.
These lofty predictions come from the “confidential” report by Teeka Tiwari’s Palm Beach Research Group, claims an unconfirmed report.
The report, which calls these numbers “conservative,” compares Synthetix with Tesla, Amazon, and General Motors, stating “disruptive tech projects tend to be worth more through their innovations and cutting of overhead costs.”
The decentralized platform on the Ethereum network trades everything from cryptocurrencies, commodities, forex, indexes and will soon add stocks to its list, too, by creating synthetic assets on the blockchain.
As per the report, since the beginning of 2020, Synthetix has grown its user base nearly 4x, and the assets held on its platform have also increased 4.4x to over $750 million. Since February, the platform has also generated over $1 billion in trading volume but “has massive potential to eat more market share from traditional exchanges.”
“Conservatively, we think Synthetic could come to command a premium five times higher than traditional exchanges,” further reads the report. This is because the decentralized protocol eliminates middlemen and expensive overhead costs needed to run an exchange.
With an estimated $130 trillion trading in equities every year alone, even capturing a tiny portion of the market would see the volume on the platform, trading fee, profits, price, and the market cap of the digital asset ballooning, argues the report.
With the bull market in focus, everyone is back to making wilder predictions. However, given that Synthetix is one of the hottest DeFi projects in the market, it can achieve a higher value, but it’s to be seen just how high they will go.