Down by 93%, but not quite out – The SushiSwap [SUSHI] story
As the native token of DEX, SUSHI is influenced by the development of the DeFi market in many ways. However, recent pessimism has made SUSHI far from profitable for its investors despite a 71% recovery from its June lows.
SushiSwap is unique…
SUSHI is one of the few altcoins that did not set an all-time high (ATH) in May 2021. Instead, it hit a new high in March 2021 and has been on a downward trend since May.
In fact, the cryptocurrency has plunged more than 93.4% in the year and a half since the aforementioned ATH.
While the crypto market is in the midst of a recovery, SUSHI has yet to really make up for the losses of its investors.
However, the reverse is not the case, as improvements in DeFi have no significant impact on altcoins.
Between June and August 7, SushiSwap’s performance as a DEX improved after more than eight months of downtrend. The same first instance can be seen when looking at the average monthly users on the DEX.
By November 2021, there are 170,000 active users on the platform. By the end of June, that number had dropped to just 49k.
Last month, 7k users returned to the network. Interestingly, higher numbers are expected this month, as over 15,000 users were already recorded during the first week of August.
However, along with their presence, it is also important to increase their activity, which is a key driver of growth. SushiSwap’s June trading volume totaled $1.8 billion, which fell slightly to $1.52 billion last month.
Now, August volumes are expected to end the year at $1.3 billion — down from July.
Even so, SushiSwap is on the verge of overtaking Balancer with over $336 million in trading volume over the past week. In doing so, it may claim that the latter is the fourth largest DEX in the market.
Hopefully, with such a change, SUSHI can also see some growth and recover 93% of its losses.