Synthetic Assets and Synthetix: Launching the Next Generation of Crypto Derivatives Trading on Gate

“Synthetix allows us to trade all assets from the traditional world on the blockchain, from gold to US stock indices, and even cryptocurrencies,” a seasoned trader shared in Gate’s community discussion, “and Gate provides the best bridge connecting centralized liquidity with decentralized innovation.”

According to the latest data from CoinDesk, Gate’s derivatives market share achieved an astonishing growth of 9.32% in 2025, ranking first among all centralized trading platforms. Meanwhile, Synthetix, as a representative of decentralized synthetic asset protocols, is redefining the boundaries of crypto derivatives.

01 Synthetic Assets: Unlocking a New Dimension in the Derivatives World

The crypto derivatives market is undergoing a structural transformation. Unlike traditional futures or perpetual contracts, synthetic assets create entirely new forms of derivatives.

In traditional finance, synthetic assets have long existed. But blockchain technology makes them more open and inclusive. Anyone with a crypto wallet, without the need for identity verification, can participate in trading various assets globally.

The core innovation of the Synthetix protocol is that it allows users to generate various synthetic assets (Synths) by staking SNX tokens as collateral. These synthetic assets track the prices of real-world assets but exist entirely on the blockchain.

02 Synthetix Protocol: The Foundation of Decentralized Synthetic Assets

The Synthetix protocol is built on Ethereum and its Layer-2 networks, employing a dual-token model design.

Users first need to stake SNX tokens as collateral, then can mint synthetic assets linked to the prices of various assets, such as sUSD (synthetic USD), sBTC (synthetic Bitcoin), or sETH (synthetic Ethereum).

This mechanism allows users to gain exposure to asset price movements without actually holding the assets.

Unlike traditional centralized derivatives exchanges, trading synthetic assets on Synthetix does not require a counterparty. All trades are interactions between users and smart contract pools, significantly reducing counterparty risk.

03 SNX Token: Economic Model and Market Performance

SNX is the native utility token of the Synthetix protocol, serving functions in staking, governance, and incentives. Users can participate in protocol governance and earn trading fee rewards by staking SNX.

As of January 14, 2026, users can access the latest SNX prices and market data on the Gate platform. As a leading global crypto trading platform, Gate’s share of the derivatives market has increased to 11%, making it one of the fastest-growing trading platforms in this field.

The economic model of SNX is cleverly designed to link protocol usage with token value. As more synthetic assets are created and traded, the demand for staking SNX also increases, creating a virtuous cycle.

04 Gate Advantages: The Bridge Connecting Centralized and Decentralized Worlds

As the fourth-largest derivatives exchange globally, Gate not only offers traditional centralized trading services but also actively integrates decentralized finance experiences.

For Synthetix and synthetic asset traders, Gate provides a unique value proposition: enjoying the high liquidity and user experience of centralized exchanges while seamlessly accessing decentralized protocols.

On the Gate platform, users can conveniently trade SNX tokens while benefiting from low slippage and deep liquidity. According to the latest monthly report from CoinDesk, Gate’s share of the derivatives market achieved a cumulative growth of 9.32% in 2025, more than double that of the second-ranked platform.

Gate’s platform token GT is also an important part of the ecosystem. Although we cannot provide the latest price as of January 14, 2026, previous data shows that GT was priced at $10.56 on January 5, 2026.

05 Practical Guide to Trading Synthetic Assets

For users interested in starting to trade synthetic assets, here is a practical guide:

First, understanding the basic principles of synthetic assets is crucial. Unlike directly holding assets, synthetic assets provide price exposure rather than actual ownership. This means you can go long or short on an asset without dealing with storage or custody issues.

The second step is choosing the right trading platform. If you prefer the convenience of centralized exchanges, Gate is an ideal choice, offering SNX trading pairs and a rich variety of derivatives products.

For users wishing to interact directly with the Synthetix protocol, using decentralized wallets like MetaMask and being prepared to pay Ethereum network gas fees are necessary. Regardless of the method chosen, risk management is essential.

06 Risk Management: Key Considerations in Derivatives Trading

While trading synthetic assets offers unprecedented flexibility, it also involves specific risks. Smart contract vulnerabilities could lead to fund losses, and insufficient liquidity may cause high slippage.

For users staking SNX, collateralization ratios must also be considered. The Synthetix protocol requires maintaining a high collateralization ratio to avoid liquidation. During market volatility, this could introduce additional risks.

Centralized exchanges like Gate mitigate some risks by providing insurance funds and risk management systems. According to CoinDesk’s exchange benchmark assessment, institutional users need to consider multiple factors such as counterparty risk, market quality, security, and regulatory compliance when evaluating trading platforms.

07 Future Outlook: The Integration of Synthetic Assets and Traditional Finance

As blockchain technology matures and regulatory frameworks improve, synthetic assets are expected to play a larger role in traditional finance. Through synthetic assets, global investors can access any market frictionlessly, regardless of geographic or identity restrictions.

Gate is well-positioned in this trend, with continuous product upgrades and brand development driving platform growth. Recently, Gate App was revamped, and Gate Pay launched institutional account features, providing merchants and institutional users with a one-stop multi-tier account management solution.

In 2025, Gate also received the “Best Centralized Exchange” and “Best Brand of the Year” honors at the inaugural BeInCrypto 100 Awards.

As more institutional participants and traditional financial institutions enter this space, the market depth and diversity of synthetic assets will further expand, creating more opportunities for traders.

Future Outlook

On Gate’s real-time data dashboard, the trading volume of SNX shows a steady upward trend. Meanwhile, the total value locked (TVL) in the Synthetix protocol has exceeded $5 billion, creating markets for thousands of synthetic assets.

On platforms like Gate, the boundaries of traditional finance are dissolving. Traders can enjoy the liquidity and speed of centralized exchanges while exploring innovative financial products brought by decentralized protocols.

The crypto derivatives market is experiencing unprecedented integration and innovation, and synthetic assets are undoubtedly among the most exciting areas of this transformation.