SushiSwap’s SUSHI Bounces 10% as Crypto Market Recovers
SushiSwap (SUSHI) incurred a strong drop this past week, falling alongside Bitcoin, Ethereum, and the rest of the DeFi market. The price of the leading cryptocurrency fell from its multi-month highs near $2.50 to $1.95 in a strong move lower.
This move was much more rapid and deep than drops in other cryptocurrencies. But quickly, the market has picked up the slack. SUSHI is up 10% in the past 24 hours, pushing from the $2.00 region to $2.22 as it recovers in line with Bitcoin and Ethereum.
BTC trades at $18,800 as of this article’s writing, moving higher after days of consolidation in the low-$18,000s. Many think that BTC is benefiting from the news that MicroStrategy will be purchasing $650 million worth of BTC. This purchase is likely to have a material impact on the market, even if it is purchased algorithmically.
SUSHI may be rallying as Bitcoin leads the rest of the crypto-asset market. Further, there are fundamental trends set to drive the cryptocurrency higher.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
SushiSwap Fundamentals Add to SUSHI Rally
SushiSwap’s developers are currently working on a core product called BentoBox that will add value to those that use the core decentralized exchange.
This product is known as BentoBox. BentoBox is seeking to become a money market solution that will allow users to margin short any token where there is a market. As “BoringCrypto,” the core SUSHI developer of this new product, writes:
“Platforms like Compound and Aave allow users to deposit assets as collateral and borrow other assets against this. These protocols have attracted billions of dollars, but they suffer from some major limitations. Taking away these limitations could see much larger adoption. This proposal aims to do just that… This will allow for the creation of thousand of lending pairs for any token, creating the ability to go margin short on a large variety of tokens. This is something that is in high demand, but currently not available for most tokens.”
Many think that this will add value to the SushiSwap ecosystem and potentially result in more fees distributed to SUSHI holders.
Quantstamp, a leading auditing firm, is in the midst of auditing this new product.
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SushiSwap recently entered a partnership/merger with Yearn.finance, one of the leading DeFi protocols.
This partnership allows the two protocols to realize synergies between products and developers, bringing value to both products.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com SushiSwap's SUSHI Bounces 10% as Crypto Market Recovers