- In just a week of launch, Sushiswap gained an impressive record. The project has attracted more than $1.3 million of locked-up funds.
- Sushi launched trade on 29 August 2020 and within a few days, sushi achieved its all-time high of $11.93
Time has progressed, and the cryptocurrency industry has become faster. The DeFi trend has emerged, and strange things are happening in the cryptocurrency market every day, and many people have entered the market. With the latest trend, mainstream coins have been replaced by “non-mainstream coins” on the list.
From the first generation of DeFi founder MKR to the first generation of mining COMP, etc., to the DeFi market maker Uniswap, Yield Farming I and II and III, and the fantastic AMPL, even the hottest Sushi these days, DeFi wave is impacting the cryptocurrency market. Each phase of the new bull market brings new opportunities, fresh perspectives, and new investors. Instead of complaining, it is better to enter the game, look, learn, and play in the light of developments.
Investors are increasingly taking interest in the DeFi game, currently the hottest in the defi market is Sushi. On August 27, the hardfork of Uniswap, SushiSwap entered the market with a boom. SushiSwap, popularly known as “Sushi,” spread mysteriously on twitter. Then, it quickly secured its listing on the three major crypto exchanges. In just a week of launch, Sushiswap gained an impressive record. The project has attracted more than $1.3 million of locked-up funds.
The Craze of “SUSHI”
The cryptocurrency market is known for its crazy boom, whether it’s the ICO boom of 2017 or the DeFi Boom of 2020. The recent overnight craze of SushiSwap once again depicts the madness. In just three days of it’s launch on September 1, the world’s largest cryptocurrency exchanges extended their support for Sushi. The first exchange to list Sushi was OKEX, in less than an hour Sushi got listed on another exchange Huobi, followed by Binance. Within three hours sushi was available for trading on all major exchanges, which interprets their sense of urgency to grab the hot spot in the market.
SushiSwap is developed on top of Ethereum by a developer called ‘Chef Nomi’. Per the official introduction, SushiSwap is “the Uniswap evolutionary version of SUSHI token economics added.” Industry experts favor it as the incentive layer of Uniswap, which provides liquidity mining based on transactions to further reward participants. The model is equivalent to Uniswap+Yam.
Sushi launched trade on 29 August 2020 and within a few days, sushi achieved its all-time high of $11.93. Not just the price but the market capitalization also surged by more than 200% in span of 2 days. However, the surge couldn’t be sustained for long, as the SUSHI fell down below $7 to touch $4.88 at the reporting time with a negative change of 18.52 percent.
The Abrupt Rise and Fall of “SUSHI”
The Uniswap’s fork wanted to position itself in the market as a better DEX eliminating shortcomings of Uniswap.SushiSwap offered liquidity providers an opportunity to earn Sushi tokens. Sushi attracted liquidity whales who received huge yields of SUSHI on invested assets. Sushi’s liquidity has reached over $100 million within a few days. The circulating supply climbed from about 2.5 million to over 74.3 million in nearly ten days. The price of sushi also climbed from $1 to as high as $10.Sushi witnessed more buyers than sellers which created FOMO and the listing on Binance added more fuel to it.
Binance provided enough liquidity to whales to offload their holdings on FOMOers. However, the major plunge in Sushi’srice came when the anonymous founder of SushiSwap cashed out over $13M worth of assets from SUSHI’s dev funds to ETH. This caused the project to almost collapse, a sell-off by Nomi pulled the SUSHI price to lower levels registering more than 80% drop. However, FTX CEO (Sam Bankman-Fried) comes into the rescue and saved the coin from falling to zero.
SushiSwap Technical Analysis
Sushiswap (SUSHI) seemed to have entered accumulation after a breakout from falling wedge, bears are in control and looks like they will try to hold price between those levels to accumulate more before take off.
Rsi is slowly entering oversold area, Sushi is more likely to visit previous support $1.41 and if bulls are in control they will push the priceup again to the resistance line.One fakeout is expected where some seller set their stop losses too tight and the bears will take advantage of that. Since sushi is new this could have a faster cycle and hopefully within this month we will see a breakout from this channel.
$1.41 is a level of strong support for Sushiswap, on the other hand, resistance can be found at $3.15 level. Sushi needs to break out from the accumulation channel. Breakout from here would lead sushi to $4.70 level.