The Sushiswap price bucked the trend on Tuesday as other cryptocurrencies slumped. SUSHI, its native token, jumped by more than 1% and tested the highest level since November 20th. It has jumped by more than 110% from its lowest level this month, bringing its total market capitalization to more than $1.7 billion.
What is SushiSwap and why is it rising?
The Decentralized Finance (DeFi) industry is seeing strong growth as more young people embrace its concept. Today, according to DeFi Llama, there are hundreds of DeFi platforms that have a total value locked (TVL) of more than $253 billion. This makes it a significantly big industry.
SushiSwap is one of the biggest DeFi in the world. It has a TVL of more than $5.3 billion, making it the 14th biggest platform. It had a controversial start. Its founder, Chef Nomi, simply copy-pasted the code of Uniswap and lured investors by offering them the SUSHI tokens.
The idea behind SushiSwap is relatively simple. It is a platform where members can buy and sell assets among themselves, without going through intermediaries like Coinbase and Binance. Today, the network offers about 2,445 pairs to trade. It has also processed more than $157 billion worth of cryptocurrencies.
Recently, the SUSHI price retreated sharply after differences emerged among two camps in the network. This happened after two large holders of the SUSHI tokens submitted a proposal to restructure the project. The plan suggested establishing a more formalized entity to manage the effort and ensure that funds are spent well.
While SushiSwap was meant to be a community-owned project, it has become a relatively centralized platform that is controlled by several large holders. In the past, they have bypassed the recommendations of other minority holders.
It is unclear why the SushiSwap price is rising today even as other cryptocurrencies like Bitcoin, Ethereum, and Terra slump.
SUSHI price prediction
The four-hour chart shows that the SUSHI price has been in a strong bullish trend in the past few weeks. In so doing, the coin has managed to move above the 50% Fibonacci retracement level. It has also risen above the descending trendline that is shown in red. Also, it has risen above the 25-day and 50-day moving averages. This is a bullish sign.
Therefore, there is a likelihood that the SushiSwap price will keep rising as bulls target the key resistance at $10, which is along the 61.8% retracement level.
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