How SushiSwap [SUSHI] managed to pull a Terra before it was cool

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Once val­ued at $119 at its high­est, Ter­ra today has three zeroes after the dec­i­mal before a num­ber appears. Trad­ing at $0.0001902, LUNA has lost 100% of its val­ue this month. 

But not too far away with­in the DeFi sec­tion of the cryp­tocur­ren­cy list sits anoth­er token that did leave its investors hope­less, although it did not tank as ter­ri­bly as LUNA.

SushiSwap’s Titanic

Back in May 2021, the DEX’s token SUSHI peaked at $23.93 before the bears took over, and the alt­coin nev­er found anoth­er oppor­tu­ni­ty to turn the tide around. 

Thus, with­in a year, the coin went from its ATH to chang­ing hands at $1.02 ear­li­er this month. Mark­ing a 95.24% decline, SUSHI investors are suf­fer­ing loss­es high­er than most of the exist­ing coins.

SushiSwap price action | Source: Trad­ingView – AMBCrypto

How­ev­er so, SUSHI hold­ers have sur­pris­ing­ly held on to some sliv­er of hope since, as per on-chain data, investors have not sold their hold­ings nor exit­ed the net­work yet.

This is despite the fact that 94.66% of them are far from wit­ness­ing prof­its any time soon.

SushiSwap investors | Source: Intothe­block – AMBCrypto

Of these 84k address­es, 1.03k address­es are those poor investors who bought dur­ing the hype at the time when SUSHI was trad­ing at its high­est. Their hold­ings are at a sol­id 95% loss and might nev­er turn into prof­its again.

SushiSwap hold­ers who bought around ATH prices | Source: Intothe­block – AMBCrypto

But it’s not just the spot mar­ket that’s not­ing a decline. Being a DEX SushiSwap has been observ­ing a fall in par­tic­i­pa­tion as well as usage.

At its best, the Decen­tral­ized exchange reg­is­tered almost 100k new users in a month in Novem­ber 2021. The fig­ure has since dropped significantly. 

This month SushiSwap only marked 26.8k new users, and only 32.5k old users were still active in May 2022. Com­bined, these users rep­re­sent about half of the just the new users SushiSwap had back in November.

SushiSwap month­ly users | Source: Dune – AMBCrypto

Even so, the volatil­i­ty observed in the mar­ket in the last few weeks cer­tain­ly trig­gered a lot of investors to move their hold­ings around, be it for the bet­ter or worse. 

Con­se­quent­ly, SushiSwap has already observed assets worth $3.32 bil­lion being trans­act­ed on the DEX this month and is expect­ed to draw in anoth­er $1.15 bil­lion in vol­ume before the end of the month.

SushiSwap month­ly trans­ac­tion vol­ume | Source: Dune – AMBCrypto

Giv­en the uncer­tain­ty sur­round­ing the cryp­to mar­ket, even DEX­es can’t be expect­ed to per­form well month-on-month, which is the case with SushiSwap.

But when a recov­ery is trig­gered, investor activ­i­ty will increase as well.

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