Bitcoin could be the key to SUSHI’s recovery
SushiSwaps SUSHI has been in trouble for some time, but its price action problems are not limited to the spot market as the performance in the DeFi market was also rather lackluster. Even so, SUSHI is very dependent on Bitcoin and it seems that only Bitcoin can save it.
SUSHI keeps falling
While there are many other DeFi protocols out there that are doing well and recovering, SushiSwap’s Total Value Locked (TVL) steadily dropped from $ 7 billion to $ 5.4 billion, and lost 22% of the TVL in 10 days .
TVL on SushiSwap | Source: DeFi Lama
In addition, the trading volume of SushiSwap decreased by 50.76%. And of course the SUSHI spot prices are also affected.
SUSHI price action has fallen 23.34% over the same period and has also lost over 38% of its active addresses. When people lose money, they leave the market.
SUSHI price promotion | Source: TradingView
This has also resulted in sustained selling pressure in the past few days, with some long-term (LTH) owners also reducing their inventories.
LTH’s decision was a really hard hit for SUSHI as it had a bad November and investors suffered heavy losses. For example, profitable addresses fell to just 29%, their lowest level in 6 months.
Profit from SUSHI investors | Source: Intotheblock
The only chance of salvation is that the whales are still unsold, although 65% of the supply is dominated by whales.
The recent introduction of the NFT and Shoyu Metaverse markets should act as a trigger. However, with the NFT hype dead and sales on the order of $ 40 million, it’s unlikely to have any significant impact.
Opensea NFT trading volume | Source: dune
With the correlation with Bitcoin remaining high, larger gains on Bitcoin could help SUSHI recover. Otherwise, it will stay at $ 9.09.
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According to AMBCrypto