SushiSwap (SUSHI) Token Price Forecast

SushiSwap (renamed Sushi) is a decentralized exchange (DEX) and ecosystem with many other DeFi products (Kashi for fast loans in collateralized cryptocurrency, Onsen for startup liquidity acceleration).

It is known as Uniswap’s closest competitor during DeFi Summer boom 2020-2021. Sushi became popular primarily due to the Vampire Attack on Uniswap’s liquidity.

SushiSwap`s vampire attack on Uniswap

Vampire attack is a new blockchain project’s strategy to quickly attract users and their funds from a more popular competitor app. In the fall of 2020, Uniswap, a decentralized exchange became the target of a vampire attack.

In 2020, the decentralized exchange Uniswap began rapidly gaining popularity in the DeFi space. By early September 2020, the daily trading volume of the protocol reached $1.8 billion, which was comparable to the leading centralized cryptocurrency trading platforms.

Against this background, a project called SushiSwap appeared. Its anonymous creators made no secret that the new protocol was a fork of Uniswap. However, SushiSwaps`s significant difference lay in having its own SUSHI token, which plays the role of a reward for farming in pools.

While almost every decentralized exchange now has a management token, at that time it was not a common practice. However, DeFi already had examples of their effectiveness as an economic incentive.

The SushiSwap team offered attractive terms for liquidity providers: thanks to rewards in SUSHI, participation in exchange pools brought hundreds or even thousands of percent annually. As a result of the vampire attack on September 9, 2020, Uniswap lost its title of the largest decentralized exchange, when SushiSwap users transferred over $1.14 billion of Uniswap’s $1.9 billion of blocked cryptocurrency assets to the new SushiSwap platform, reducing the total value locked (TVL) by 70%.

However, this situation did not last long: the high farming speed of SUSHI led to a sharp inflation of its price, due to which the yield in SushiSwap pools decreased quickly too. Already by mid-September, Uniswap had returned to the DeFi leaders in terms of TVL. A little later, the UNI management token appeared, which finally nullified SushiSwap’s advantage. But Sushiswap attracted a lot of attention, and eventually became a separate decentralized exchange.

SushiSwap Overview  

SushiSwap is considered a fork of the Uniswap project by its architecture. It is also based on the Ethereum blockchain, which allows the trading of ERC20 tokens via smart contracts. The difference between SushiSwap and its parent exchange is the ability to borrow or invest in cryptocurrencies.

SushiSwap is based on a decentralized exchange. It operates on the principle of the automatic market maker (AMM), through smart contracts and user-funded liquidity pools. They receive liquidity provider tokens – SLPs – for filling the pools. Each pool is a separate cryptocurrency pair, which is made up of a stablecoin or ETH and a basic token. A user who has provided two tokens of the trading pair of the pool in the same amount becomes a liquidity provider. To get SLP, you have to freeze ERC20 tokens on the exchange. The more tokens are frozen, the more SLP the user will receive and the higher his fee will be.

Providers get remuneration in the form of SUSHI tokens for providing liquidity. The amount of SUSHI is defined as 0.25% of the commission for all transactions, proportional to the number of SLPs held.

The SUSHI token is a digital currency that conveys the value of Sushi ecosystem elements. It is suitable for paying for services and goods online. Traders, trading floors, and investment firms use the token for speculative purposes. For liquidity providers, the protocol accrues rewards with this token.

For the SUSHI token, you have to buy xSUSHI, which is designed to control the protocol. Holders of xSUSHI optionally execute interchain swaps and receive rewards. Through this incentive model, a healthy atmosphere is maintained in the site’s ecosystem. Therefore, the SUSHI cryptocurrency is considered the main infrastructural unit of the project ecosystem. SUSHI is the backbone of the SushiSwap economy. They are traded on almost every platform that supports ERC20. The platform encourages SUSHI holders: it gives access to passive income and other tools of the company.

Today the Sushi project has gone beyond SushiSwap and through a series of solutions, the project forms a healthy ecosystem of decentralized finance. Kashi and BentoBox are considered the main solutions of the platform. Kashi is used to creating credit markets with interest rates. BentoBox is a subsystem that allows the use of mini-decentralized applications on the chain and generates additional profits. Users exchange cryptocurrency without third parties, vendors provide liquidity, and stakeholders participate in governance.

SUSHI Price Analysis

As you might have guessed, SUSHI entered the cryptocurrency market on August 28, 2020, with almost zero value. By September 1, 2020, however, the price jumped dramatically from a few cents to more than $12 as pharming users rushed to capitalize on the insane annual percentage yield offered by SushiSwap.

A day later, the price dropped by more than 50% to under $6 and fell again by more than 50% on September 5, 2020, to about $2.50 when SushiSwap co-founder Chef Nomi liquidated SUSHI for more than $14 million accumulated by the protocol as development funds, prompting sharp criticism and leading to his ouster with control of SushiSwap being transferred to the CEO of the crypto exchange FTX and Alameda Research.  Chef Nomi subsequently returned all withdrawals to the developer fund.

For the first time since 2020 on 13 June, 2022 Sushi fell below $1, as cryptocurrency prices collapsed following the cancellation of withdrawals on the Celsius Network (CEL) crypto lending platform.   

The price has since been relatively stable compared to its earlier volatility, as the token has traded firmly within the $1-$2 range from mid-May onwards, although there was a sting in the tail in November, as the  FTX exchange collapsed and filed for bankruptcy, crashing the crypto market for the third time in a year and sending SUSHI down to a low of $1.01 on 10 November. By 30 November 2022, there had been some recovery and the token was trading at about $1.42.

SUSHI currently trades at about $1.27, down about 94.56% from $23.38 as of  March 2021. As one of the largest multichain DEXs in the DeFi space with a proven use case and a TVL of over $1.51 billion, SushiSwap could potentially return to its previous $20+ range in the long run. Sushiswap token price is showing initial signs of reversal but the confirmation will come when bulls will be able to break out of the $1.5 hurdle level.

Tokenomics

The token emission is limited to 250 million SUSHI. Since the launch of the protocol, tokens can be earned by those who provide liquidity or hold their SUSHI in the stacking pool. Like Bitcoin, tokens are issued on a free distribution basis, without an ICO.

The reward of the pool participants from each block in the network started in the amount of 1,000 SUSHI, then dropped to 90 SUSHI, and eventually became 0 SUSHI by 2023. 10% of all rewards are moved to the developer fund (vault) for the project.

SushiSwap Price Forecast for 2024-2026

SushiSwap Price Prediction 2023

Sushiswap crypto price recovered 38% approx from the recent lows at $0.905 and reclaimed the 50-day exponential moving average. 

The sushi token price bounced back from the long-term demand zone and marched towards the supply zone of $1.500. Wallet Investor analyst platform in its 2023 SUSHI price prediction expects the token’s cost to fall in the next 12 months to a mere $0.0848. DigitalCoin’s SUSHI coin price prediction suggests that the midpoint value of the token in 2023 will be $2.53.

SushiSwap Price Prediction 2024  

DigitalCoin is extremely optimistic. In its Sushi swap price prediction, the service expects the SUSHI/USD conversion rate to rise to $3.21 in a year. Price Prediction believes that the Sushi token will peak at $3.31 by the finalization of 2024.

SushiSwap Price Prediction 2025  

DigitalCoin predicts that the asset is likely to jump to $4.57 in 3 years. Following the Price Prediction`s sushi price prediction 2025, Sushi will be able to reach $4.84.

SushiSwap Price Prediction 2026  

In the long-term sushi crypto price prediction provided by the Price Prediction agency, the token’s typical value in 2026 will not exceed $6.20. DigitalCoin believes the token has every prospect of getting to a maximum of $5.73.

FAQs  

Is SushiSwap a Good Investment?  

Like all DeFi projects, SushiSwap generated interest among users. Just five days after its launching, the token’s capitalization has already exceeded $250,000,000. The Uniswap fork is good mainly because it does not raise development funds from third parties, but relies entirely on the community, which meets the principles of decentralization.

Despite the seeming ridiculousness of the project and the chaos it has caused in its short history, SushiSwap still managed to retain about 800 million of the initial 1.14 billion it took out of Uniswap. 

Despite a rather tumultuous and bumpy path in its early days, SushiSwap has evolved into one of the popular solutions for DEX, farming, and LP in DeFi.

Potentially, one day it might even steal the crown from Uniswap as the ultimate DEX platform.

But it should also be noted that the relatively unprofessional name and user interface of many DeFi protocols, including SushiSwap, maybe even more distasteful to serious retail investors than to experienced traders. In addition, controversies such as Chief Nomi’s fraud ultimately hurt the space.

SushiSwap seems to offer more “delicious food” than ever under its new leadership. The ambition and dedication of its core developers and community are admirable and may be enough to propel the project into the distant future.

Cryptocurrencies are a highly volatile asset class. Whether SushiSwap is a suitable investment depends on your risk attitude and the composition of your investment portfolio. Before deciding to buy SUSHI tokens, you should conduct an independent analysis to evaluate the asset and never invest more than you can afford to lose.

How Much Will SushiSwap be Worth in 5 years?  

The price of SUSHI in 5 years could lie around $2.98, according to CaptainAltcoin’s prediction model.

Price Prediction estimates that the token has a good chance of hitting a high of $9.59.

How Much Will SushiSwap be Worth in 10 Years?

Predicting the value of cryptocurrencies is quite a complicated and thankless task because their volatile nature implies unpredictability, and variability both upward and downward. What to say about long-term forecasts for decades. Analyzing the history of the creation and development of the project, analysts agree that long-term growth of the token’s value is expected. DigitalCoin anticipates that the price of SUSHI could skyrocket to $24.53 in the next 10 years. Traders Union predicts the price will rise to $32.387, and Captain Altcoin’s Sushiswap price prediction 2030 demonstrates that SushiSwap could climb to $7.69 in 2030.

Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.