Synthetix Network Token is about to face a sell-side liquidity crisis

The Synthetix Network Token has seen a parabolic price surge over the past month as the decentralized finance sector sees some explosive growth.

SNX's rise is coming about as only an extremely limited quantity trade on exchanges, with its current demand far exceeding its circulating supply.

This has helped fuel its price rise but has also created what some analysts are calling a "Sell-side liquidity crisis." Put simply: no one is selling their SNX tokens.

Synthetix Network Token could soon face a sell-side liquidity crisis.

In the time following June 1st, the price of the Synthetix Network Token has risen significantly, rallying from lows of $0.75 to highs of $2.90 that was set today.

One pseudonymous analyst named Humboldt Capital explained that the token could be on the brink of seeing a "Sell-side liquidity crisis" due to the present lack of selling pressure.

"SNX is about to have a sell-side liquidity crisis. I haven't yet seen a community with holders this strong - no one is selling. Holders already know about the upcoming product roadmap - futures, layer 2 trading, margin - and everyone is expecting CEX listings."

Another popular crypto commentator pointed to four main drivers of value to the Synthetix Network Token.

"Let me break this down into simple terms: - SNX holders take their SNX off exchange and stake - the SNX community has been growing, and people have been buying all of the available SNX - SNX has a lot of really cool stuff coming up - there will be more buyers than sellers."

Unless the DeFi sector sees a downwards shift that causes investors to panic-sell their holdings, it is a possibility that the token associated with Synthetix will further near-term upside.