Even though Bitcoin has been around since 2009, the cryptocurrency market is new. So new, in fact, that a lot of new terminologies and names had to be invented and utilized. Terms such as hodling, tokenomics, FOMO are now becoming mainstream.
Names of many cryptos such as Ethereum, Polkadot, Litecoin, VeChain, Uniswap, etc. are also becoming well known. With that being said, sometimes developers or inventors of new projects and protocols come up with some rather catchy or even cute names.
This SUSHI price prediction article will examine the features of Sushiswap and what makes it so unique and controversial. It will also take a look at the price forecast for its token, SUSHI (again, nothing to do with the food), in both the short and long term to find out if this token is really fresh and good for your portfolio health.
Other project names, however, are pretty weird, if not confusing. Such names sometimes don't really have anything to do with cryptocurrency or decentralized finance (defi).
So what if there is a decentralized exchange (dex) platform project that is not only new but has one such weird name? Even more so, this dex, apart from its name, has also generated some serious controversy surrounding its birth and whom it is competing against. This dex is none other than Sushiswap, and no, it has nothing to do with the Japanese cuisine delicacy as this writer originally thought.
Sushiswap Historical Price Analysis
Sushiswap has not even been around for a year. Given its lack of history, it can be a bit difficult to analyze it for a predictive forecast. However, what can be said about it is where the price had been.
The SUSHI token was launched on August 28, 2020. It started with a price of $3.44. Shortly thereafter, it experienced an immediate spike in both price and market cap. The price increased up to $10.19 by September 1, according to CoinMarketcap.
After that, the price for SUSHI began to see a slow but steady decline in the months after (more on that in a bit). It only began to experience another price increase sometime in mid-November. As per the effects of a bull market, the price for SUSHI continued to increase, finishing the year 2020 with a price of $2.687.
The price, however, did not stop there. As we entered into the new year, the price continued to surge. On January 9, it experienced a rapid drop from $4.62 on that day to about $3.40 by January 11, only to rapidly increase again to $7.37 by January 16, 2021. Due to the price of Bitcoin continually dropping, the price for one SUSHI also began to go down steadily.
Current Price, Market Cap, & Supply Details
At the time of writing this article, the price for one SUSHI is $6.13. According to CoinMarketCap, it is ranked #47 in the entire crypto market. It has a market cap of $787,456,067, with a circulating supply of 127,244,443 SUSHI. Its max supply is 250,000,000.
SUSHI has experienced a -5.18% in price in the last 24 hours. In the last 7 days, though, it has experienced a 12.85% increase.
Sushiswap (SUSHI) Future Price Forecast Predictions
After analyzing several sources and their fundamentals, the SUSHI token appears to have a very positive outlook. For example, Wallet Investor has not only scaled Sushiswap to be very bullish but has also forecasted the price to increase + 86.61% in just one year, a price of $11.44.
On the other hand, Tradingbeast has predicted that by the end of 2024, the average price of a SUSHI token will be $14.08.
Short Term Forecast
Long Term Forecast
SushiSwap Price Prediction 2021
2021 is expected to be a very, VERY exciting year for crypto. Not just with the current bull market, but the number of institutions, enterprises, and retail investors making their to the market, there is no doubt that the price of Sushiswap is going to continue its upward trend.
2021 has been forecasted to be positive with the price, with an average +45.53% increase. Considering this is only just one year, that's not too shabby.
SushiSwap Price Prediction 2022
2022 will also have a positive percentage increase, although it appears that the price will more or less remain where it reached in 2021, between the $9.00 – $10.50 mark. Nevertheless, for anyone interested in buying more SUSHI tokens, 2022 appears to be a good time before the train really leaves the station.
SushiSwap Price Prediction 2025
As we get to 2025, the price has been forecasted to more than double. With a whopping percentage increase of an average +185.32%, an investor holding a substantial amount of sushi in their bag (again, not the food.) can expect a highly tidy profit.
Is Sushiswap a Good Investment?
With such strong price forecasts, and with the decentralized finance (defi) sector continually blossoming, there can be little doubt that investing a portion of your portfolio funds for SUSHI tokens is a good investment. As the years continue to roll by, investors can expect a part of their funds to more than double. Not only that, but any Sushi token hodler can expect to have a say in governing the Sushiswap platform.
So, it seems that the Sushiswap dex project seems to be having it good by the looks of things. Its token is seen to be very positive financially. People are rushing into the defi space to make their fortunes. Everything is great, right? Well, not quite. If Sushiswap appears to be a good investment, why then does it have a notorious reputation? That is where we will dive to next.
You can token the SUSHI token from a wide variety of exchanges. Those who hold the most volume are Binance, OKEx, Huobi Global, Sushiswap, Bitfinex, and BKEX. You can go to CoinMarketCap or CoinGecko to get a full listing of exchanges.
More Information About Sushiswap
What is Sushiswap?
Sushiswap is a fork from Uniswap with its own governance token, SUSHI. Launched on August 28, 2020, the automated market maker (AMM) quickly became popular along with its parent dex, Uniswap. Unlike Uniswap, though, it provides additional features, such as increased rewards for liquidity providers.
Taking the Uniswap code, it developed into a completely new platform. They offered incentives that were more community-oriented than Uniswap, allowing any SUSHI token hodler to have more say in the governance of the project than what Uniswap provided.
To incentivize users to use the platform, as well as to make it more community-oriented, they adjusted the rewards features. Uniswap provides 0.30% of fees generated from swapping to the liquidity providers (LP) in accordance with how much liquidity each user-provided. As you can see, this suited large LPs well, but not those that were only able to provide small amounts.
On Sushiswap, liquidity providers would get 0.25% of those fees, while the remaining 0.05% would get converted back to SUSHI and distributed to Sushi token holders. This meant that early liquidity providers, regardless of how much they contributed to the pool, would get paid interest from fees and be allowed to become early members in governing the platform.
Not only that, if a user decided to withdraw their funds from the pool, they would still be able to earn part of that 0.05% fee in SUSHI because they were SUSHI token holders prior. As you can see, this scheme was very attractive and the number of funds that became locked exploded! However, how Sushiswap managed to acquire $1 Billion in two weeks was extremely controversial.
Sushiswap's approached was essentially a vampire attack on Uniswap. What is that? To get users to migrate to its platform by taking their liquidity tokens and staking them on Sushiswap, Sushi created highly incentive rewards for those early migrators. Those rewards were in the form of giving those migrators high amounts of SUSHI tokens. They did this by minting out 1000 SUSHI per block for the first two weeks after its launch. This essentially sucked the life out of Uniswap in both users, liquidity pools, and trading volume. It was estimated that over 90% of users took their tokens and migrated over to Sushiswap.
To further incentivize users to use the platform, those early token rewards were reduced to 100 tokens per block for later migrators. Also, those that staked their SUSHI tokens were given additional fees.
For those wishing to provide liquidity, they have two choices. Once you hop over to the sushiswap website, you can choose to provide liquidity at either the farm section or their new Onsen menu. The farm section is a regular liquidity pool. The Onsen menu, though, is a rotational rewards system. That means that those in governance vote on which pairs will be featured, which will remain the same, and which will not.
In regards to the SUSHI tokenomics, originally, the token was not to have a max supply. After its two weeks launch, the number of SUSHI being produced per block was 100. However, it was later decided to have an actual hard cap on the number of SUSHI being minted and some other changes. That max supply is 250,000,000, and it is expected to be reached by November 2023.
In addition, the number of SUSHI tokens being minted per block was set to be reduced. Currently, only 60 SUSHI/block are being minted, and it will decrease again to 50 by February 1, 2021. This will undoubtedly help with the price to stave off inflation, as that was probably the main reason these changes occurred.
Regarding governing the Sushiswap ecosystem, any SUSHI hodler is eligible to be part of its governance. As it stands, any major structural changes and use of the devfund (short for developers' fund) are voted by the community, while OxMaki and the core team will decide on any smaller changes. Wait. Who the heck is OxMaki?
The controversy surrounding Sushiswap does not end with its vampire attack. While other defi protocols such as Aave, Compound, and Uniswap had founders that were well known, the founders of Sushiswap were not. In fact, their exact identities are still not known. Someone with the pseudonym Chef Nomi founded Sushiswap. Two other co-founders were sushiswap and OxMaki. All people knew about them were their Twitter handles.
While Chef Nomi initially had his admin keys to the migration contract sent to a timelock contract, preventing him from having full access to any pool, and invited any organization to audit the protocol to ensure its verification and security, the real scare was about to take place.
Like eating a piece of sushi with a large chunk of wasabi stuck on it, Chef Nomi then attempted to initiate what looked like an exit scam. While Chef Nomi did not have access to the pool funds, he did have access to the devfund, which had allocated 10% of all distributed SUSHI tokens. On September 5th, he removed all of his liquidity from Uniswap and suddenly sold all of the SUSHI tokens in the devfund for 70,000 ETHs, at the time worth $30 million dollars!
Chef Nomi attempted to justify his actions, but the community was scared that an unknown person had too much power and lost trust. The tokens inside the devfund were supposed to fund further development and research for the project. They were not personal tokens. Even fellow co-founder OxMaki expressed shock and disappointment over Chef Nomi's actions. Not surprisingly, this uproar caused the price for SUSHI to tank.
Luckily, Sam Bankman-Freid (SBF), the CEO of Ameida Research, who also had one of the largest bags of SUSHI, jumped in and practically saved the project. He offered to control the project to allow a smooth and successful of the still ongoing migration of users to the project. Chef Nomi approved and handed over the keys to him. SBF then created a multi-signature wallet in order to make it decentralized.
Not long after, Chef Nomi then surprisingly returned the funds that he had taken! In his own tweet, he had “F**** up.” Whether he acted out of guilt or fear of being a wanted man by the authorities is not known.
All of this happened within a month of the project's launch!
Sushiswap has one of the most controversial and volatile origin stories ever. Amid the defi hype that was and still is exploding, the incident with Chef Nomi proved that checks and balances and decentralized authority are a strong prerequisite for any decentralized protocol. This incident no doubt left a nasty, wasabish taste in many people's mouths and could have been a death blow to the project.
Nevertheless, despite it all, Sushiswap came out of this chaotic uncertainty stronger than ever. It is now more community-oriented, with users allowed to submit proposal and vote on it, as well as many checks and balances now being placed to ensure such an incident never happens again.
From an investor's perspective, the fact that a project was able to come out from such a serious incident should serve as proof of the project's and the community's strong resilience to ensure its survival. Despite the scare it created, it is of the opinion that this lesson should be viewed with a positive outlook.
Against it all, the project survived and is now thriving. Its community proved its strength to mobilize against any threat to both their financial interest and the interest of decentralized finance as a whole, even if it did almost sucked the life out of another defi project.
Regardless of how one might see the project, there is strong competition among many cryptos and defi protocols, each with their own way of ensuring that their project continues to be relevant in such a young market. With that said, any investor wanting to have a healthy investment portfolio should consider adding a bit of sushi into their diet.