SushiSwap’s SUSHI token has been one of the best-performing crypto-assets of the past few days. In the past day, it has surged 30%, making it the best-performing coin in the top 100 by market capitalization.
Analysts are confident that the cryptocurrency has room to grow to the upside despite it already rallying 100% higher in the span of a week.
Here’s why the cryptocurrency is moving so far and so fast.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
SushiSwap Gains Traction
SushiSwap’s ongoing rally seems to be related to the strong uptick in the retail and institutional interest in the asset.
Sam Bankman-Fried, CEO of FTX and CEO of Alameda Research, recently commented on the exchange and ist token SUSHI:
“Sushiswap had a really shitty autumn, as the glow of DeFi summer wore off and the memory of NomiGate lingered. And during that…. it just kept on building. I’m not really involved in what Sushi is doing, but I’m happy to see it keep pushing the industry forward.”
This came shortly after prominent DeFi fund Future Fund revealed that it has an interest in the cryptocurrency. It cited upcoming technological developments and releases, including an options-based impermanent loss mitigator, a lending solution, amongst other improvements that will benefit holders of the protocol.
There are many other prominent investors and analysts in the space that have also recently thrown their weight behind the cryptocurrency. This is likely driving improved user interest, thus pushing prices higher.
SushiSwap also seems to be benefiting from the expectations that once Unsiwap’s liquidity minnig incentives will end, platforms like itself will benefit as it experiences a surge in liquidity. Whether or not this happens remains to be seen as the liquidity mining period for Uniswap still has a number of days to go.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Overall DeFi Rally
SUSHI’s rally is also a byproduct of the ongoing rally across the DeFi space. Top coins across the Ethereum altcoin risk spectrum have rallied dozens, even hundreds of percent from their local lows.
SUSHI was one of the most sold-off coins during the DeFi correction of September and October.
Naturally, as its fundamentals have improved, so has its price trajectory. The cryptocurrency is likely to continue its ascent higher in the weeks and months ahead as the DeFi space continues to get back on its feet after a brutal drawdown after a parabolic run up.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: SUSHIUSD, SUSHIBTC Charts from TradingView.com Why SushiSwap's SUSHI Has Surge 100% Higher in a Week
Credit: Source link