Is the SUSHI rally over?

SushiSwap’s SUSHI token ended pretty well in 2021. Everyone is currently expecting an outstanding move that begins in 2022. However, given the macro performance of this decentralized exchange (DEX), the situation could develop the other way round.

The end has come for SUSHI?

SUSHI has recovered well over the past 2 weeks. While this seems like a success, the reality is that the token isn’t doing that well right now.

When the price rose 94% it broke the downtrend line again. At the time of writing, the price is about to test this line again.

If that fails, SUSHI reverts to a month-long pattern. One thing that is very uncomfortable for investors is that this pattern continues to fuel the possibility of reaching new ATHs.

SUSHI price promotion | Source: TradingView

While the above step pulled 33% of the total number of investors out of the red, 54% of all SUSHI holders have not yet made a profit.

Investor profitability SUSHI | Source: Intotheblock

In addition, the growth rate of SushiSwap has been falling steadily since November and it has not only failed to attract new market participants, but also failed to keep old users. Notably, the weekly investor metrics are down 10,000 for new users and 6,000 for old users.

When the price started to go up, there were 9,000 new users. However, the upward trend cannot be sustained for long.

New user at SushiSwap | Source: dune

As a result, the number of on-chain transactions drops by an average of 40,000 / month. This has resulted in a volume decline of over $ 6 billion in just 2 months. As a result, the January performance forecast has been downgraded to just $ 9 billion.

Monthly volume at SushiSwap | Source: dune

Part of the reason for this also lies with investors as they are not typical long-term owners. The interesting thing is that SUSHI owners sell as soon as they make a profit.

For this reason, the average holding period of SUSHI is only 2.5 months.

Average SUSHI hold time | Source: Intotheblock

Active network usage is essential for any asset to function properly. When a DEX like SushiSwap is battling for one of the top three, their investors can act as a great motivator by providing HODL and support. That way, the SUSHI token and investors can have a good first month of the year.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Best Altcoins to Buy Today: Qubetics Rides 1000x Potential to Hit $2.6M, Ethereum Stays Rangebound, Tron USDT Transactions Hit $52B

Discover the best cryptos to buy and hold today: Qubetics leads with 1000x potential, Ethereum…

1 hour ago

Trump Media Company Is Pushing New Venture For Crypto Service

With the platform facing a cracked whip, Trump Media company is expanding into new business…

2 hours ago

Crypto Advisory Council Now A White House Position Attracting Leaders

Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…

3 hours ago

Analyst Sounds Major Breakout Alert Amid Shiba Inu, WallitIQ, And Dogecoin Price Recoveries

Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…

3 hours ago

SEC Chair Gary Gensler Will Lose Power From January 20

SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…

3 hours ago

MicroStrategy Convertible Notes Now Out of Stock With $3B Raised

The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…

4 hours ago

This website uses cookies.