Is Sushiswap Token Price Tracking Broader Crypto Market?

The purpose of this article is to show that the price of the Sushi token actually follows the trend of other Markets and also follows the trend of other DEXs.

Using SushiSwap, users can buy and sell different cryptocurrencies among themselves, like they do on a traditional exchange. The tokens are supported by smart contracts as opposed to a central organization, and users lock crypto into the software so traders have access to it.The trader who trades locked assets pays a fee, which is then proportionately distributed among all liquidity providers.

Users of SushiSwap can exchange tokens, earn rewards through yield farming, and more with this Ethereum-based decentralized exchange (DEX).

From Sep,2020 onward, there is a high market value for the SUSHI Token in the beginning, and during November,2020, the token price went upto $12.27. To date, there have been fluctuations in SUSHI Token price between the maximum $12.27 and the minimum $4.23 price. Prices are decreasing for the token and we can see that the price has decreased almost 60% from the beginning.

Here, we compare Sushi with the other DEXs Token prices (Uniswap, Balancer and Curve) as well as how the price trend is going on with the market Prices (Ethereum and Bitcoin) .

Sushi’s Price Versus The Market

Based on the graph below, we can see how the Sushi market is performing compared to other markets like Ethereum and Bitcoin .On December 2nd week of 2021, the price of Sushi fell down -19.88% and other BTC is down -9.48%, while ETH is down -4.88%. For the period in January 23-29,2022, Sushi’s value fell by -25.62%, while BTC’s value fell by -7.20%, and ETH’s value fell by -15.22%. Meanwhile the correlation between Sushi,BTC, and ETH are not significant.

Sushi’s Price Versus The DEXs

Below is a graph comparing the price of the SUSHI token with the other DEX tokens of UNI,BAL, and CRV. In the below graph, as an example, SUSHI decreased by -19.87%, CRV decreased by -16.82%, UNI decreased by -17.23%, and BAL decreased by -19.87% during Dec 05-11, 2021 week. And also ,On Jan 23-29 2022 week ,SUSHI decreased by -25.62%, CRV decreased by -27.11%, UNI decreased by -26.56%, and BAL decreased by -17.94% .It’s evident that all these tokens have a closer correlation there. SUSHI follows the same trend as all other tokens UNI, CRV, and BAL, as shown in the graphs below.

Conclusion

Based on the above analysis, we can see that the SUSHI tokens follow very near the values of the DEX tokens UNI, CRV, and BAL, which mean that the SUSHI token trend is generally following that of the rest of the DEX tokens.

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