Has SushiSwap’s $14 million Kava partnership failed to woo investors

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The Decen­tral­ized Finance (DeFi) world is ever-grow­ing thanks to the expan­sion of the top­most DeFi pro­to­cols and plat­forms. Var­i­ous avenues are open­ing up for users to make the most of their invest­ments. Tak­ing that thought fur­ther, SushiSwap is a facil­i­ta­tor of the same, at least giv­en its most recent developments.

SushiSwap swims further

Ear­li­er last week, the Decen­tral­ized Exchange (DEX) was deployed on the Kava net­work, thus expand­ing its reach to more than 14 blockchains. The Kava net­work will also enable SushiSwap to enjoy the incen­tives of the Cos­mos system.

The part­ner­ship was estab­lished with a com­bined allo­ca­tion of $14 mil­lion, with SushiSwap and Kava each allo­cat­ing $7 mil­lion over a peri­od of 90 days.

This will be an oppor­tu­ni­ty for SushiSwap to be part of the Kava Rise Pro­gram, which intends to make DeFi and the Web3 inter­op­er­abil­i­ty easier.

This devel­op­ment, sur­pris­ing­ly, did not trig­ger any strong reac­tion from either com­mu­ni­ty, espe­cial­ly Sushi’s, even though it is the third biggest DEX with dom­i­na­tion of almost 4%.

DEX mar­ket share | Source: Dune – AMBCrypto

Although such a cold reac­tion does hap­pen to make sense since most of the Sushi sup­ply isn’t exact­ly used for trad­ing over exchanges.

As per on-chain data, only 15% of SushiSwap’s 127 mil­lion SUSHI sup­ply is on the exchanges. Anoth­er 42% of it is either sit­ting idly, or its loca­tion is unknown now.

How­ev­er, 40.26% of the sup­ply (51.14 mil­lion SUSHI), worth approx­i­mate­ly $101.16 mil­lion, is staked as xSUSHI on stak­ing protocols.

Even so, the price of SUSHI still mat­ters as a lot of investors who have been hold­ing onto the asset for a while now are prob­a­bly look­ing for an increase from the lows so they can enjoy some profits.

Cur­rent­ly, more than 87% of the investors are wait­ing for the price to recov­er and pull them out of loss­es, which can­not hap­pen unless SUSHI is able to reclaim the 50-day Sim­ple Mov­ing Aver­age (SMA).

SushiSwap investors in loss­es | Source: Intothe­block – AMBCrypto

Fur­ther­more, the line has act­ed as sol­id sup­port in the past, and if SUSHI is able to close above it and bounce off, its ral­ly beyond $2 might be a real­i­ty soon.

SushiSwap price action | Source: Trad­ingView – AMBCrypto

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