Sushi price prediction: What is SUSHI?
It allows people to swap cryptos over different blockchains, but what is sushiswap (SUSHI)?
Let’s see what we can find out about the token, and take a look at some of the SUSHI price predictions that were being made as of 30 November 2022, too.
SushiSwap explained
Among the growing number of decentralised finance (DeFi) services launched over the last few years, SushiSwap allows users to trade cryptocurrencies directly. If you want a more detailed answer to the question “what is SushiSwap?” then the answer is that it is a decentralised exchange (DEX).
The software primarily runs on the Ethereum (ETH) blockchain, although it also operates on other compatible chains, including Fantom (FTM) and xDAI. It added support for Polygon in May 2021.
SushiSwap enables users to exchange, earn, lend and borrow tokens, stack yields and leverage funds. The decentralised exchange (DEX) creates automated liquidity pools that allow users to swap any cryptocurrency token based on Ethereum for another one.
Every blockchain-based network needs its own native token, and SushiSwap has the conveniently named sushiswap, also known as SUSHI. People can earn SUSHI by staking their various crypto assets in liquidity pools and holders can vote on proposals concerning the future of the network.
Because it is based on Ethereum, SUSHI is a token, rather than a coin. You might see references to such things as a “sushi coin price prediction”, but these are wrong.
The food-themed SushiSwap ecosystem was launched by anonymous co-founders known as Chef Nomi, sushiswap and 0xMaki. The aim was to create competition for UniSwap and launch additional features, such as higher rewards, with SUSHI tokens. SushiSwap launched in August 2020 as a controversial hard fork, or split, from the UniSwap automated market maker (AMM) that drained its liquidity.
In early September 2020, Chef Nomi withdrew $14m in Ether (ETH), a highly criticised move that resulted in the anonymous co-founder exiting the project and transferring control of SushiSwap to Sam Bankman-Fried, co-founder of the FTX cryptocurrency exchange and cryptocurrency trading company Alameda Research.
Chef Nomi then returned the $14m worth of ETH to the project’s developer fund. 0xMaki continues to lead the project, with Joseph Delong as chief technology officer.
In a series of tweets, Chef Nomi said: “I will continue to participate in the discussion and technical implementation of SushiSwap in the background. But will not have any control. Will not take any spotlight. Will not be part of the governance.”
I will continue to participate in the discussion and technical implementation of SushiSwap in the background. But I will not have any control. Will not take any spotlight. Will not be part of the governance.
— Chef Nomi #SushiSwap (@NomiChef) 11 September 2020
In September 2021, 0xMaki announced they were “moving away from day-to-day operations into an advisory role to help foster the next generation of teams building on top of Sushi, supporting from the sideline, and helping without affiliation the broader DeFi ecosystem regardless of where they are deployed”.
On 5 December 2021, SushiSwap responded to a series of allegations made by a former employee known as AG in November, including that the senior management of the organisation was failing its community through internal conflict.
On 25 January 2022, it announced it had joined the decentralised crypto community Frog Nation. According to Daniele Sesta of Frog Nation, the move is intended to help make SushiSwap “the most used DEX, and bringing the team and community spirit back to what Sushi previously was”.
On 27 January 2022, SushiSwap tweeted that it was “aware of allegations pertaining to the larger ecosystem” and said it was reviewing the situation.
“To be clear, Sushi continues to be independent in order to drive forward the goals of the protocol. Individuals in question have no access to operational/treasury wallets,” the tweet continued."
In April, the crypto announced a restructuring plan after losing key staff and a failed partnership with crypto collective Frog Nation. The restructuring aimed to retain talent across the entire functional spectrum, establish a formal compensation committee to serve as a check in transparency and accountability for all budgetary matters, and search for a new executive and leadership.
SushiSwap charges a trading fee for transactions that increase the value of the SUSHI token, allowing holders to make a profit. If trading demand on the AMM rises, the SUSHI price will rise. So, how does it work?
Liquidity providers are rewarded with SushiSwap Liquidity Provider (SLP) tokens for staking their tokens in liquidity pools. They can stake SLPs in the “farm” and earn interest. Exchange users pay a 0.3% trading fee, of which 0.25% is added to the liquidity pool balance, so that when liquidity providers withdraw their tokens, they are worth more than when they were deposited.
The remaining 0.05% is added to a SushiBar pool, to be divided among SUSHI holders when they withdraw their SUSHI tokens.
BentoBox allows users to deposit funds for lending in exchange for a fee. Kashi, a market built on BentoBox, allows borrowers to deposit collateral to borrow a token for gas fees or flash lending.
The remaining developers are rolling out several new features. At the start of November 2021, the Shoyu NFT marketplace launched with a 10-week v0 phase featuring curated non-fungible token (NFT) drops to stress test the system.
According to SushiSwap’s quarterly update in the autumn of 2021:
It added: “Social tokens, fractionalising and support for NFTs not minted on Shoyu will arrive in later versions.”
SUSHI contracts operate across multiple blockchains, and the developers noted in the update that it “currently has active farms on xDai, Arbitrum, Celo, Harmony and Polygon, and we will continue to add new farms on new chains. In Q4, we expect to have new farms on Moonbeam, Avalanche and Near.”
Sushiswap price history
Let’s now take a look at some of the SUSHI price history. While past performance should never be taken as an indicator of future results, knowing what the token has done in the past can help us by giving us some context for when we want to either interpret a SushiSwap price prediction or else make one of our own.
As we can see from the above price chart, the SUSHI cryptocurrency price rose to $13.10 on 1 November 2021, as it trended higher from the dip across the cryptocurrency markets in late September that took the price down to $8.50. It then declined, dropping by 49% to $6.70 on 28 November 2021.
At around $5.20 on 20 December, SUSHI was still up by around 80% since the start of 2021. But it had been putting in lower highs since it reached its all-time high of $23.40 on 13 March 2021. The token ended 2021 on a positive note, reaching a high of $10.37 on 31 December.
However, SUSHI has struggled to get back above the $10 mark in 2022. By late January, it had fallen below $5 and continued on a downtrend in the following months, falling below $1 for the first time since 2020 on 13 June 2022, as cryptocurrency prices collapsed following the cancellation of withdrawals on the Celsius Network (CEL) crypto lending platform.
The price has since been relatively stable compared to its earlier volatility, as the token has traded firmly within the $1-$2 range from mid-May onwards, although there was a sting in the tail in November, as Bankman-Fried’s FTX exchange collapsed and filed for bankruptcy, crashing the crypto market for the third time in a year and sending SUSHI down to a low of $1.01 on 10 November.
By 30 November 2022, there had been some recovery and the token was trading at about $1.42. At that time, there were 127,244,443 SUSHI in circulation out of a total supply of 244,542,059. This gave the token a market cap of around $180m, making it the 132nd-largest crypto by that metric.
SUSHI price prediction
With that all said and done, let’s take a look at some of the SUSHI price predictions that were being made as of 30 November 2022.
It is vital to remember that price forecasts, especially for something as potentially volatile as cryptocurrency, often end up being wrong. Also, many long-term crypto price predictions are made using an algorithm, which means they can change at any time.
First, CoinCodex had a short-term SUSHI crypto price prediction which suggested that the token could climb to $1.60 by 5 December before falling to $0.96 by 31 December. The site’s technical analysis was rated as being neutral, although there were 20 signals making bullish signals – more than double the nine making bearish ones.
Another algorithm-based forecaster, DigitalCoinPrice, made a SUSHI price prediction that suggested the token could average $1.71 in 2022. The website’s SUSHI price prediction for 2025 said the token could rise to an average of $6.24 in 2025 before climbing to $20.06 in 2030.
PricePrediction made a SUSHI price prediction that estimated the SUSHI price could achieve an average of $1.47 in 2022 and $4.50 by 2025. The site then made a SUSHI price prediction for 2030 that said the token could average $32.13 that year.
Finally, Wallet Investor was far more bearish when it came to making a SUSHI price prediction for 2023. It suggested the token could collapse in the next 12 months to a mere $0.0848.
When considering a SUSHI token price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns, and never trade with money that you cannot afford to lose.
FAQs
Is SUSHI a good investment?
It is hard to say. A lot will depend on whether the network can grow, as well as on how the market performs as a whole.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether SUSHI is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.
Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.
Will SUSHI go up or down?
It is difficult to say. While the likes of DigitalCoinPrice were optimistic at the time of writing (30 November 2022), other sites such as Wallet Investor were far more bearish. It is important to remember that price predictions often end up being wrong, and that prices can go down as well as up.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether SUSHI is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.
Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.
Can SUSHI reach $100?
Probably not in the immediate future, although it is hard to say what might happen in, for instance, 30 years’ time.
As always with crypto, you should never invest more money than you can afford to lose, remember prices can go down as well as up, and make sure to do your own research before investing.
Should I invest in SushiSwap?
This is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research.
Never invest more money than you can afford to lose, because prices can go down as well as up.
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