Sushi (SUSHI) Definition

While the digital currency Sushi may be less known to those outside the cryptocurrency community, crypto enthusiasts are likely familiar with it. It is a cryptocurrency at the heart of the SushiSwap exchange. As with other currencies, Sushi has seen its fair share of volatility, but it remains among the top 150 cryptocurrencies.

What Is Sushi?

SushiSwap (SUSHI) is a cryptocurrency token hosted on the Ethereum (ETC) network. Versions of the SushiSwap currency are also available on the Solana, Avalanche, Binance Smart Chain, Polygon, Terro, Celo, Harmony, Fantom, and xDai networks.

This well-supported token works across multiple blockchain networks for one good reason. It’s used as the primary currency of the SushiSwap decentralized exchange (DEX), a peer-to-peer exchange in which transactions occur directly between crypto traders.

At the time of writing, SushiSwap is the 142nd-largest cryptocurrency by market capitalization, according to the aggregator of cryptocurrency market data CoinMarketCap. Of the maximum 250 million token supply, 242 million have been created. Like other cryptocurrencies, it has seen wild fluctuation of prices, with a peak of more than $20 per coin and recent values dropping to under $2 each.

SushiSwap is a DEX, in which users can exchange between different virtual currencies using a connected cryptocurrency wallet, such as MetaMask. The exchange allows swapping between 11,700 currency pairs.

What Is Staking?

To facilitate trade, users worldwide deposit currency with the exchange, known as staking. At the time of writing, the total value locked (TVL) in the exchange is $2.28 billion. TVL is the sum of all assets deposited in decentralized finance (DeFi) protocols.

Staking occurs when an investor wants to swap assets, and the sale uses the pool of staked assets to facilitate the trade, thereby generating a fee. A portion of the fee goes to the depositors, offering an incentive to keep funds on the exchange.

SushiSwap works differently from centralized exchanges like Coinbase and Gemini, where trades are made between users. These centralized exchanges are the custodian of customer deposits which are much like an online stock brokerage. Employing a DEX-like SushiSwap, users are responsible for their individual cryptocurrency wallets. The exchange is not a custodian of deposited funds; it merely acts as a facilitator.

History of Sushi

In late 2021, Sushi tokens fell on news that developers were leaving the project, but that turned around in December when developer Daniele Sestagalli proposed that Avalanche take over the network. Sushi rose 10% with that development. In a lengthy post on the Sushi forums, Sestagalli explained a path forward to evolve SushiSwap’s…