Decentralized exchanges (DEXs) have become increasingly popular in 2021. One popular platform traders use frequently is SushiSwap with its native token SUSHI. In the last 24 hours, SUSHI has rallied significantly drawing attention to the decentralized protocol.
Founded by a mysterious entity known simply as Chef Nomi, SushiSwap is a fork of the more popular automated market maker (AMM) Uniswap. And just like its parent protocol, it has enjoyed prominence due to the decentralized finance (DeFi) boom that sprung up in 2020.
This article considers SushiSwap’s role in the crypto ecosystem and why it might be a great time to buy SUSHI.
SushiSwap: Fork Of Uniswap
SushiSwap is a crypto protocol built on the Ethereum network. It is an automated market maker (AMM) and has been on the rise ever since it launched in Sept. 2020.
AMMs do not make use of order books like centralized exchanges and users can provide liquidity quickly and easily without needing to observe any protocol.
SushiSwap is a DEX that uses smart contracts to create markets for cryptocurrency users to trade any number of given tokens easily and seamlessly. Founded by another mysterious figure in the blockchain space known as Chef Nomi, SushiSwap has seen its value spike since DeFi went mainstream.
SushiSwap serves as the tweaked and more sophisticated version of UniSwap and offers more features than the top DEX platform.
By this, it aims to provide a better incentive program for liquidity providers (LPs) on the platform. Aside from earning a cut from trading fees of the crypto protocol, LPs get SUSHI tokens as well.
Just like its parent blockchain, SushiSwap takes 0.3% of the transaction fees and distributes 0.25% to all LPs and distributes the rest in SUSHI tokens.
SUSHI is its native token and serves as the platform’s governance tokens through which holders can vote on proposals on the network.
67% of all retail investor accounts lose money when trading CFDs with this provider.
SUSHI: Token Rally Good For DEX
On the global crypto chart, SUSHI occupies the 69th position with a market valuation worth over $1.1 billion. Its 24-hour trading volume is up 250% and the number of SUSHI tokens in circulation currently stands at 51% meaning there are more tokens to be mined.
Turning to its price action, SUSHI currently trades at $9.0386, up 22.46% on the daily trading chart. This has attracted more investors who want to buy SUSHI.
As promising as this may look, SUSHI has posted better returns prior to this rally. On March 13, the ERC-20 token surged to $22.67, up more than 1000% since its Dec. 2020 slump to $2.
However, it could not retain this price action and subsequently dipped to $15.43 on March 30. It regained momentum and traded at $21.73 on May 18 before the crypto market crash a few days later.
It struggled much of June and saw its price continue to drop on the $13.31 resistance level. This recent rally could play in its favor as more investors look to buy SUSHI.
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