Crypto analyst gives 3 reasons why SushiSwap DEX is poised to boom higher

sushi sushiswap joseph young
image from marketrealist.com

Key SushiSwap takeaways:

  • Crypto expert Joseph Young evaluated SushiSwap ecosystem and has an optimistic outlook on the company’s future.
  • The analyst noted that the high trading volume and the growing number of customers inspire confidence.
  • The upcoming Improvements in Sushi’s AMM (Automated Market Maker) protocol could lead to better user experience.

YEREVAN (CoinChapter.com) – Joseph Young, a crypto analyst, and an expert at the Hashed blockchain technology company, shared his views on the SushiSwap DeFi ecosystem and its prospects. The analyst asserted that Hashed bought $3 million worth of SUSHI tokens and intended to hold them long-term.

He also commented that Hashed feels optimistic about the ecosystem and presented three reasons to back his opinion.

#1 High trading volume

Mr. Young reported that SUSHI enjoyed a $100 billion all-time trading volume. Moreover, its 24-hour trading volume stood at over $400 million, putting SushiSwap right at the threshold of the top five decentralized exchanges.

DEXs by daily trading volume. Source: CoinGecko.com
DEXs by daily trading volume. Source: CoinGecko.com

The expert calls the figures “quite incredible” and presents the stats for high liquidity. The Stakers of Sushi liquidity positions earn SUSHI tokens on top of trading fees on the exchange. Various DeFi projects can incentivize liquidity with SUSHI instead of diluting their tokens.

Sushi is the primary source of liquidity for many projects in the DeFi space, according to GlassNode.

SushiSwap

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#2 Growing number of users

The platform currently has more than 375,000 users, as Mr. Young reported. However, the number has grown gradually in the past year, partially due to the growing liquidity supply. According to the charts below, the number of new users in the Sushi ecosystem is rising.

Sushi user stats. Source: glassnode.com Hashed
Sushi user stats. Source: glassnode.com

However, despite the growing number of users overall, the retention stats weren’t convincing. In hindsight, retention is the number of returning users. The number of churned customers is higher than the number of users that return after one visit. So the overall growth of the audience is mainly due to the new addresses.

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#3 Sushi’s AMM improvement plan

The Hashed analyst stated that the DeFi platform’s plan to improve the Automated Market Maker (AMM) protocol is one of the reasons behind his optimistic outlook. Trident is Sushi’s new AMM protocol, aimed at capital efficiency and cryptocurrency volatility protection.

Sushi, Young Hashed

You will see […] the focus we have placed on our next generation AMM’s capital efficiency and see how we have created a solution to seamlessly integrate and intertwine Sushi’s many products to give you a DeFi experience as never imagined.

reads the announcement for Trident.

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Crypto expert Joseph Young listed several reasons for his positive outlook on the ecosystem’s future. Hashed, the blockchain company behind Mr. Young, purchased $3 million worth of SUSHI tokens and announced its intention to hold them long-term. The reasons listed above paint an optimistic future for the DeFi platform.

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