SushiSwap has recently been experiencing enormous growth in their prices as well as liquidity rates. For the last 3 months, they have been witnessing some tremendous gains in terms of their market price along with exchange volume.
The governance token of the project named SUSHI has suddenly made a massive increase to $15.60 from a mere $0.52 within a small period of 3 months’ time. This indicates a spike in their market value that is almost 3,000%.
Improved Fundamentals Of SushiSwap
The transformation in the price of the coin represents that the fundamentals have changed significantly within the SushiSwap during the past few months.
Most importantly, the liquidity has increased dramatically. The protocol possesses $258 million on the 4th of November 2020 in their TVL (Total Value Locked). At present, the project owns TVL over $2.97 billion. This indicates a significant increase in the liquidity that is over 1,000%.
The rising liquidity of SushiSwap can be credited to the decision of paying the liquidity providers their trading fees that were produced from the SUSHI tokens as well as the protocols as a prize.
Collaborations also have their benefits for the project. In late 2020, the project collaborated with Yearn Finance. The partnership enabled the firm to acquire access to the development resources of Yearn. In return, SushiSwap assisted Yearn to kick-start Deriswap which is a service that unites swaps, futures, options, and loans within one single contract.
The generous rewards of the project have gained attention also. Ryan Watkins, a Messari researcher, has reported that this protocol offered $6.1 million out of their rewards to the participants throughout the month of January 2021.
SushiSwap is presently trading at a price of $15.59 and ranked number 28 according to CoinGecko.