Here's Why $SUSHI is Undervalued

By @jackste73371898 and @RochelleSophie_ 

Sushiswap is a decentralized exchange (DEX) -- which means it relies on self-executing smart contracts to facilitate trading. Rather than using order books to facilitate trades, DEXs use liquidity pools to determine pricing, and allow peer-to-peer instantaneous asset swaps. 

The $SUSHI token is distributed throughout the community as liquidity incentives. It gives holders the ability to participate in governance and earn a part of the fees paid to the protocol as reward. 

The $SUSHI token currently has a price of $12.29, a fully diluted market cap of $2,677,584,963 and a 24-hour trading volume of $178,863,340.

And since launch -- the DEX and its token have been gaining immense popularity. Here are some facts to highlight it: 

1- Sushiswap is available on the most amount of blockchain networks. 

SushiSwap is made up of a collection of liquidity pools across 14 different blockchains, which is more than any other DEX and includes top networks such as Ethereum, Fantom, BSC, and Avalanche. Second in line is Curve finance with half that amount. 

2- The DEX has been gaining 2,000 new users per day and is currently seeing nearly half a million users. 

3- $300 million is being traded daily since late August, and $1 million is collected daily in fees. 

4- In just the past month, the total value locked (TVL) on SushiSwap has gone from $4.2 billion to $5.5 billion.

Compare that to the other major DEXs, and it’s clear that Sushiswap is winning the race. 

But the two metrics that prove that SUSHI is undervalued are really these two: 

  1. (daily swap volume) / (fully diluted market cap) 
    Using this metric, SushiSwap has a similar value to Balancer while having 60x the swap volume. And it is valued at 10% of Uniswap while having 20% of the swap volume. 

  2. (daily fees collected by the protocol) / (fully diluted market cap)

    Because the holders of the SUSHI tokens are entitled to a percentage of the fees collected by SushiSwap, having a high ratio of fees to market cap means that SUSHI token holders are getting a higher percentage cashflow than holders of the other DEX tokens listed above. In addition to stacking up well against other top DEXs using the above metrics, SushiSwap has had high user growth and a fast increase in TVL which are both indicators of a healthy protocol with a flourishing user base.  

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