Ethereum is undergoing its latest craze: SushiSwap, whose native governance token is Sushi (SUSHI). The coin took a strong drop after it was launched this past weekend, but has since bounced back.
Since bottoming around $0.70 just two days ago, the asset has exploded higher by 1,000%. The coin now trades for $6.60 and is up 120% in the past 24 hours alone.
A good portion of this move higher comes after the coin was listed on FTX, a leading centralized exchange known for listing DeFi coins earlier, then sparking price rallies in those coins.
FTX was the first major centralized exchange Sushi was listed at, hence the influx of investment the asset saw in the wake of the listing.
What Is Sushi and SushiSwap?
SushiSwap is a clone of the Uniswap exchange with bells and whistles attached. The Ethereum-based protocol is focused on adding community and governance incentives to Unsiwap, which has rapidly become the most prominent Ethereum application and decentralized exchange. In the project’s words:
“With that, we have designed SushiSwap as the next step forward in the Uniswap protocol design: an evolution. Taking Uniswap’s elegant core design, we’ve added community-oriented features that we believe help improve the design of the protocol, as well as provide further benefits to the actors involved,” the SushiSwap team wrote in regards to the purpose of this fork.
There are some in the industry that thinks that SushiSwap can overtake the incumbent in Uniswap.
What this means for the price of SUSHI, though, is not clear.
In a world where SushiSwap outpaces Uniswap, there is likely much value to accrue to the SUSHI coin. According to NewsBTC calculations, around $350,000 worth of dividends would be sent to SUSHI holders each day if SushiSwap absorbed 100% of Uniswap’s current volume. Annualized this is $127 million.
Assuming a fair valuation of 20 price-to-earnings ratio, SUSHI should have a market capitalization in excess of $2 billion.
Center of Controversy
There is some controversy around the project, though. The founder of Uniswap, Hayden Adams, recently beefed with the founder of SushiSwap. Adams asserted that the anonymous Ethereum developer is just an opportunist, not an actual innovator in the space:
“Uniswap still has 0 fees and I’ve been working on this project for 3 years. You’ve been working on forking it for a week and selling a token you own 10% of? You don’t believe in community. You just an opportunist who wants to sell some tokens. Don’t @ me again sir.”
Uniswap still has 0 fees and I’ve been working on this project for 3 years.
You’ve been working on forking it for a week and selling a token you own 10% of?
You don’t believe in community. You just an opportunist who wants to sell some tokens. Don’t @ me again sir.
— Hayden Adams 🦄 (@haydenzadams) August 30, 2020
Photo by Kelvin Zyteng on Unsplash Price tags: sushiusd, sushibtc Charts from TradingView.com Ethereum DeFi's Sushi Rips 100% Higher After FTX Listing