What is SUSHI

Sushi is a DEX (decentralized exchange) where users can swap tokens, provide liquidity, stake, trade and more. Powering this ecosystem is SUSHI, also known as SushiSwap, the native token of Sushi. It has a variety of uses within the Dapp (decentralized app) itself, and can also be traded as a token on many other exchanges.[1]

It is best known for its automatic market making (AMM) capabilities, and since their launch, have quickly gained the attention of the DeFi community. The SUSHI token has seen its price skyrocket in the past – from an all time low of ~$0.50 to an all time high of ~$23 in a matter of months. Today it sits at ~$11.35, but what does its future look like, and what exactly can shape its future price?

Below, we examine SUSHI in some detail, and attempt to make a reasonable price assumption for the near future with the help of several price predictors. It should be noted that while price predictions are based on data, and often are analyzed by AI, they should never be taken as financial advice or a solid basis for an investment. It is always highly recommended users do their own research into the projects whose tokens they wish to invest in.

By the end of 2021, SUSHI may reach ~$16 under normal circumstances, but in a very specific, improbable scenario, may surge to ~$1377.

SUSHI maintains and operates the Sushi network where it can be used to provide liquidity, or can be staked in return for rewards and voting rights on protocols. It is essentially an exchange token that can be traded both on the Sushi network and on other exchanges, but more significantly, makes for a great fuel for Sushi’s automatic market maker (AMM) that utilizes smart contracts and liquidity pools.[2]

Automatic market makers are an important aspect of decentralized exchanges as they not only provide liquidity, but also allow the average person or trader to provide said liquidity in exchange for rewards. AMMs then use pricing algorithms to determine the prices of the assets, this allows for users to trade directly using smart contracts, without the need of an order book.

According to data gathered from Messari:

The current total supply of SUSHI is ~205,480,760.00, and is capped at 250,000,000.00

Of that amount, ~127,244,443.03 are currently in circulation

The projected inflation rate for the next 12 months is 14.41%

Supplemental data gathered from Coinmarketcap:

Current market dominance is at ~0.09%, and is currently ranked at #62 in the market

Addresses that own more than 1% of the current supply collectively own 90%

Its current market cap is ~$1,480,456,549.59 with a fully diluted market cap at ~$2,908,686,058.67

Since the max supply of SUSHI has been established, once it is entirely in circulation, inflation can begin to die down. Max supply means that not a single coin or token above the given number shall be created after minting; in this case, only 250,000,000 individual SUSHI tokens may exist.

Total supply is the amount of tokens that has already been minted (created), and current supply is the amount of the total supply that is in circulation.

The data presented above can be subject to change, always visit the source for up-to-date information: Messari – Coinmarketcap

Sushi was co-founded by 3 individuals known by the usernames Chef Nomi, sushiswap and 0xMaki[3], and has grown to a team of 15 people represented semi-anonymously on their website by their usernames and unique anime-inspired portraits.[4]

Last year they found themselves in some controversy when Chef Nomi decided to withdraw 38,000 ETH from SushiSwap. However, the funds were later returned with an apology and an acknowledgement of the mistake.[3] 

Currently SushiSwap is governed mostly by its community via discussions on forums and voting on the SushiSwap Snapshot. Major changes are voted on by the community whereas smaller ones are decided by 0xMaki and the core team. The goal is to establish a DAO with working trustless governance.[5]

They are active on Twitter, posting and retweeting updates and happenings within the SushiSwap community and the DeFi community as a whole.

On their blog page they go more into detail with their updates, be it new products or features, recent partnerships or community related events. Here they post articles of various lengths which are read by hundreds of users.

SushiSwap clearly uses a lot of imagery and terminology inspired by Japanese culture, often using food metaphorically for example. There is a laid-back, nostalgic feel surrounding the brand which is felt through the art and colors. While the team is not entirely open about their identities, the steps SushiSwap is taking towards decentralization, its growing userbase and platform have positive implications on the project.

Perhaps their largest community in terms of members lies in Discord, with over 29,000 members, followed by Reddit and Telegram hosting ~4500 and ~4300 members respectively.[1]

They have ~100,000 followers on Twitter, where official posts tend to get hundreds of likes, and #SushiSwap itself is used several times around the hour all throughout the day. Community activity is on par with their numbers, and with an interesting project at hand, there’s still room to grow.

According to Coinmarketcap, currently, SushiSwap is listed on around 55 exchanges, and is supported by over 20 wallets[1].

Wallet Investor*

The one year forecast by Wallet Investor for SUSHI is ~$4,100 – a ~34,000%** increase – and for 5 years time they predict a price of ~$9,553, a ~79,500%** increase. It currently ranks Sushi as an A+ investment in terms of predictability.

Digital Coin Price*

A 1 year forecast from Digital Coin Price predicts SUSHI will reach ~$23.90 – a ~100%** increase – and by 2026 expects it to hit ~$48.08 – a total increase of ~302%**.

Tradingbeasts*

Tradingbeasts predicts around a -20%** decrease by 2022 – down to ~$9.92 – and a ~144.40%** increase by 2024 – to ~$30.62.

*These predictions are merely supplemental data and should not be taken as financial advice

**Percentages are based on current value and could change anytime

To conclude, given the available data it seems as though SUSHI is potentially volatile, with possible decreases in the short term, but good indications of growth for the long term.

A short term reasonable estimate: ~$26.31

A long term reasonable estimate: ~$45.35

Based on the data and arguments laid out above, a price of SUSHI token in 2025 could be in the $20-$30 range. A long term reasonable estimate: ~$26.31

We are still not sure if Sushiswap and similar project do have a long-term future and SUSHI token could be worth ZERO in 2030 as the project might not exist by then. Chances are 50-50 in our eyes for that to happen.

SUSHI is a good investment for the short-term when the market is in the BULL run. Usually these types of DeFi projects do extraordinary well when the overall crypto market is in the green and they outperform other better known projects by a lot. However, make sure to exit them in time as they tend to do get a beating during ranging and bear market cycles.

Because it does propose a valuable service, the anonymous team behind it proved to be a very innovative and courageous, it already built a name for itself in its niche and suffered no security breaches or other types of compromises (economic, reputational etc). The token itself does provide utility and makes sense which is not the case with many other similar projects.

SUSHI might fail because of the fierce competition, dynamic technological field and rocket-speed developments in its niche. Another common reason this type of project fails is team issues – either the team splits or outright abandons the project.

SUSHI can be bought or sold at a variety of exchanges from Sushi to Binance, Coinbase, FTX, Phemex, 1inch and more.[6]

Buying crypto can differ from exchange to exchange, but here are solid guidelines to purchasing SUSHI:

Already have an account on an exchange that supports SUSHI?

Or

Note: many exchanges have minimum purchase and swap amounts on their platforms, and usually they are around $10-$20 in the token’s equivalent. Additionally, most exchanges issue fees for purchases and swaps, these fees and their conditions differ from platform to platform, sometimes even geographically, thus, to minimize costs, comparing exchange fees and policies is a must.

According to Sushi, over 20 wallets exist that support the SUSHI token, these include:

In general, if an exchange supports SUSHI, it should also provide a wallet for it. There are exceptions however and some exchanges do not offer wallets for all their supported tokens.

The platforms that do offer wallets may have minimum withdrawal amounts and withdrawal fees that are independent of blockchain fees. Usually these amounts and fees are minimal, but those that pay attention to costs may be interested in understanding the withdrawal policies of the exchange. Conversely, it is very rare to find an exchange with deposit fees on crypto, as they like to incentivize users to deposit on their platform.

Furthermore, not all wallets, especially exchange wallets, offer private keys; this means that while the tokens still remain yours, they are not stored in your personal wallet, rather, on one major wallet where all or part of the exchange’s assets are stored.

SUSHI is an interesting case, because it is not just a regular DEX, but also an AMM (automatic market-maker), which along with DeFi, is also seeing an increase in interest, and the predictions taken into account above seem to agree with the general idea.

A $4,100 price tag, while ambitious, calls for very specific circumstances to work, which makes it unlikely. Nevertheless, price predictors agree on a general and significant increase in the long term, and given SUSHI’s capabilities, a $35 value in 5 years time does not seem unreasonable.

Make sure to check out other price predictions too:

References & Resources:

[1] Sushi.com

[2] App.sushi.com

[3] Coinmarketcap.com/sushiswap

[4] Sushi.com/team

[5] Docs.sushi.com/governance-model

[6] Coinmarketcap.com/sushiswap/markets

Messari

Coinmarketcap

The post Sushiswap (SUSHI) Price Prediction 2021 – 2025 – 2030 appeared first on CaptainAltcoin.

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