Why SushiSwap Will Skyrocket
The DeFi platform, SushiSwap, is proving to be a worthy addition to investors' portfolios with its significant rally. Find out why.
Decentralized exchange (DEX) is a fundamental part of the market today. Unlike centralized exchange (CEX), it enables everyone to trade and invest in a permissionless way. Due to its growing popularity, DeFi investors are on a continuous search for the most efficient and productive platforms to invest in.
One such DEX platform that has been in the spotlight lately is SushiSwap. Its native token, SUSHI, has been on a colossal rise over the past few months. Let's find out why SushiSwap will skyrocket in 2022.
Released in 2020, SushiSwap has become one of the best-decentralized exchanges in the market in just a year. Several significant updates, unique features, and numerous partnerships have driven the value of SUSHI tokens over the years. But what makes SUSHI one of the best cryptocurrencies to buy now?
Why Invest In SushiSwap?
Since its inception, Sushi has cemented itself as a leading protocol in the DeFi sector.
SushiSwap is a decentralized exchange that facilitates token swaps and yield farming via an Automated Market Maker (AMM) smart contract protocol. It was initially created as an advanced fork of the Uniswap protocol. It started out quite simple with a new interface and a farmable governance token (SUSHI). Later after the launch of its yield farming protocol, SushiSwap gained millions of dollars and massive popularity.
The network garnered attention due to its large selection of liquidity pools and a community-focused approach. In addition, it is one of the few DEXs with sizable liquidity, worthy enough to compete with centralized trading platforms. Thanks to its advanced features, SushiSwap reached over $1.6 billion in liquidity, in less than a month. Also, with impressive gains in less than a year, SushiSwap has already proven to be a worthy investment option for investors.
Is SUSHI All Set To Skyrocket In 2022?
The popular decentralized exchange, SushiSwap, seems to be a good buy now for investors.
What makes SushiSwap stand out from its competitors are token swaps and yield farming. Token swaps are for trading and yield farming is for earning interest in existing assets. Moreover, the project gained massive momentum when its users started tweeting about the possibilities of gaining an extra profit by seamlessly migrating Uniswap’s liquidity to a forked platform.
By introducing significant DeFi features, the platform initially attracted a lot of the market’s liquidity solely. Later, when investors saw the platform's plan to reward yield farmers with ten times more APR for a limited time, the whole DeFi community jumped onto the SushiSwap bandwagon. The increasing adoption eventually pushed the price of SUSHI to skyrocket to new heights.
SushiSwap also utilizes several decentralized oracles. Some of them include the SushiSwap TWAP oracle, Compound’s Open Price feed oracle, and oracles created by Chainlink.
Don't Miss: Why SushiSwap Is Going To Explode In 2022
Factors That Drive SUSHI To Skyrocket
With the increasing popularity of DeFi, the value of SushiSwap would skyrocket to new highs.
Before moving into the latest updates, it is essential to know more about SushiSwap’s innovative business strategy, which the team employed for gaining liquidity.
1. SushiSwap’s “Vampire Mining” - Altering The Landscape Of DeFi
DeFi rose to a new surreal level a few months after the launch of the semi-automated cryptocurrency trading platform SushiSwap. The platform used a technique known as "vampire mining" to drain liquidity from Uniswap to SushiSwap to gain more users and liquidity. Nomi, while forking the Uniswap code, realized that liquidity was necessary for making SushiSwap a success. But it would be difficult to incentivize users to provide liquidity to a novel platform when they could easily provide it to Uniswap.
Realizing this, the creator announced that SushiSwap would offer its users two rewards for providing liquidity. First, while depositing tokens to SushiSwap, they would receive SUSHI tokens. Second, by staking those SUSHI tokens they could even gain a portion of the protocol’s total fee revenue. But to earn SUSHI tokens, users had to deposit Uniswap LP tokens.
Therefore, by siphoning liquidity in the order of billions of dollars from its competitor, SushiSwap made it clear that the DeFi community is dynamic and potential enough to pursue an activist agenda. The team exposed that it can also be easily redirected to competitors that provide more agreeable economic incentives and governance. SushiSwap successfully changed the dynamics of the DeFi community for good by introducing a polarizing new strategy at a large scale with its vampire attack on Uniswap.
2. Launch of Shoyu - The SushiSwap NFT Marketplace
One of the many reasons to buy SUSHI now is the team's plan to broaden its reach by venturing into the NFT market. Shoyu, SushiSwaps's innovative NFT marketplace, aims to position itself as a leading platform in the NFT sector. It offers a robust and aesthetically stunning platform to help emerging artists and creators enter the non-fungible space. In addition, the platform offers suggested searches, utilizing countless categories, and filters to ensure work can and will be found.
There was a significant rise in the price of SUSHI lately, followed by the launch of the website for its Shoyu NFT platform. The idea for the launch of an NFT marketplace was initially introduced by a former Sushi contributor LevX. He proposed the outline with a caching layer, front-end, and infrastructure for art storage on the Sushi protocol.
Moreover, the to-be-launched NFT marketplace promises numerous benefits to SUSHI holders too. For example, all token holders who stake their tokens on the protocol to receive xSUSHI would gain 2.5% of every NFT trade on Shoyu. Therefore, with increasing adoption comes a significant rise in SUSHI’s price and value.
3. The Trident Update - The Next Generation AMM
Yet another reason why SushiSwap will skyrocket is the release of its massive update to the platform, Trident, the new next-generation automated market maker (AMM). The new AMM has three main prongs for the platform. Those are:
a) BentoBox’s AMM
Trident is built upon BentoBox. Due to its unique design, the BentoBox platform has the architectural capacity to provide developers with the ability to construct efficient capital programs. It also offers an array of use-cases and values to both investors and users. Therefore BentoBox AMM would be a powerful tool with numerous capabilities integrated into the SushiSwap protocol.
b) Expansion Of Pool Options
The team also brings in a host of innovative features in the form of new types of liquidity pools. This would mark a departure from the typical singular constant product pool deployed by other DeFi protocols.
There would be a total of 4 new and revamped pools under the Trident update. They are a constant product pool, a hybrid pool, a concentrated liquidity pool, and a weighted pool. So now SUSHI holders and investors can seamlessly choose the kind of pool that suits their risk appetite, making SushiSwap a good investment option.
c) Updates Interface
The final prong of the Trident update is the ‘Tines routing engine,’ which makes the SushiSwap interface more intuitive and user-friendly, promoting seamless trades.
Why Will SushiSwap Skyrocket?: Expert Predictions
Crypto analysts are quite bullish about the price of SUSHI, making it a good buy now.
“By the end of 2021, the price of SushiSwap (SUSHI) shall be $10.75 with optimism looming large in the coming few years.”
Coin Price Forecast:
“According to the latest long-term SushiSwap price forecast, Sushi prices will hit $20 by the end of 2021 and then $50 by the end of 2023. Sushi will rise to $100 within the year 2031.”
Check Out: SushiSwap Price Predictions
Should You Invest $1000 In SushiSwap Now?
By implementing innovative features that help the platform stay competitive, SushiSwap has positioned itself as one of the top DEX platforms to invest in.
SushiSwap aims to bring in standardization across DeFi to propel protocols across the board for mass adoption and easy accessibility. Moreover, the project’s partnership with Yearn Finance and Andre Cronje earlier this year has also firmly cemented its position in the DeFi market. Additionally, there’s a healthy sum in its total value locked (TVL) and trading volume, making SUSHI a potential cryptocurrency to invest in.
Followed by the launch of its Trident update, the team behind Sushi will now implement its new ambitious feature, the plan for franchised pools. This would unite the CEX and DEX platforms for a mutually beneficial use case, creating a significant mark in the blockchain space.
The digital asset has become a potential player in the world of DeFi in a very short period. SushiSwap would continue skyrocketing in the coming years by developing new innovative features, more yield farming opportunities, and bringing unique DeFi initiatives or products to the DEX.
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