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- SushiSwap is now one of the fastest-growing DeFi protocols on the market. It has only taken the protocol one year from its introduction in August 2020 to become one of the top ten
- This has helped it to develop so fast that, despite the fact that Arbitrum’s mainnet was only released 17 days ago, the protocol has already raised almost $30 million
- Sushiswap’s DEX-only capability is also why the TVL on half of the chains where it’s used is less than $1 million
SushiSwap is now one of the fastest-growing DeFi protocols on the market. It has only taken the protocol one year from its introduction in August 2020 to become one of the top ten. In many respects, it has left behind Uniswap, the protocol from which it branched. SushiSwap, on the other hand, appears to have reached its limit and may not expand any further. As a result, the question arises: what made SushiSwap so popular, and what is preventing it from being even more popular? In comparison to the previous year, SushiSwap’s Total Value Locked (TVL) has increased by over 990 percent. It is also the only protocol that has been implemented on more than ten chains today. At the moment, that number is 14.
This has helped it to develop so fast that, despite the fact that Arbitrum’s mainnet was only released 17 days ago, the protocol has already raised almost $30 million. Despite being deployed on 14 chains, the demographic it caters to is the reason it is still ranked 10th. It’s all very procedure. Because it is a Decentralized Exchange (DEX), it can only be used by those who want to trade tokens. AAVE, on the other hand, allows greater values to be locked because it is a loan and earning system. This is why it is the market leader despite having just 76k users compared to SushiSwap’s 447k. AAVE’s TVL has increased by 1361 percent because of its simple and widely accessible protocol. At the time of publication, the figure was $14.18 billion.
Sushiswap’s DEX-only capability is also why the TVL on half of the chains where it’s used is less than $1 million. In fact, some only had a total TVL of $26. The other half, on the other hand, is committed to maintaining the protocol and its token. SUSHI has risen 47.38 percent in the previous week, reaching $15 on the charts before falling back to $14 at press time. In only one day, optimistic buyers purchased approximately 833,000 SUSHI from exchanges valued at $11.6 million. Simply said, SushiSwap requires a larger monetary injection in order to grow. Until then, investors will be wary of its volatility.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
