What is Next for SUSHI Coin Price in March 2022? Will Price Rise Again?

SUSHI, the coin of SushiSwap, the automated market maker (AMM) has failed to recover the value it lost when taking a hit in January’s mini crypto quake and today (15 February) at $4.27 it is just 10% up from its lowest point of 2022.  In contrast bitcoin (BTC) has pulled back more than 30% in the same period.

So after a turbulent 2021 and equally turbulent start to 2022, what is the future for SushiSwap this year and beyond?

In this SushiSwap overview, we look at the coin’s recent price movements and long-term predictions.

SushiSwap challenges Uniswap for crypto token exchange

What is SushiSwap? Among the growing number of decentralised finance (DeFi) services launched in the past year, SushiSwap allows users to trade cryptocurrencies directly. The software primarily runs on the Ethereum blockchain, although it also operates on other compatible chains, including Binance Smart Chain (BSC), Fantom and xDAI. It added support for Polygon in May 2021.

SushiSwap enables users to exchange, earn, lend and borrow tokens, stack yields and leverage funds. The decentralised exchange (DEX) creates automated liquidity pools that allow users to swap any cryptocurrency token based on the ERC-20 Ethereum protocol for another ERC-20 token.

The food-themed SushiSwap ecosystem was launched by anonymous co-founders known as Chef Nomi, sushiswap and 0xMaki. The aim was to create competition for Uniswap and launch additional features, such as higher rewards, with SUSHI tokens. SushiSwap launched in August 2020 as a controversial hard fork, or split, from the UniSwap AMM that drained its liquidity.

In early September 2020, Chef Nomi withdrew $14m in ether (ETH), a highly criticised move that resulted in the anonymous co-founder exiting the project and transferring control of SushiSwap to Sam Bankman-Fried, co-founder of the FTX cryptocurrency exchange and cryptocurrency trading company Alameda Research.

Chef Nomi then returned the $14m worth of ETH to the project’s developer fund. 0xMaki continues to lead the project, with Joseph Delong as chief technology officer.

In a series of tweets, Chef Nomi said: “I will continue to participate in the discussion and technical implementation of SushiSwap in the background. But will not have any control. Will not take any spotlight. Will not be part of the governance.”

In September 2021, 0xMaki announced they were “moving away from day-to-day operations into an advisory role to help foster the next generation of teams building on top of Sushi, supporting from the sideline, and helping without affiliation the broader DeFi ecosystem regardless of where they are deployed”.

On 5 December Sushi Swap responded to a series of allegations made by a former employee known as AG in November including that the senior management of the organisation was failing its community through internal conflict.

On 25 January it announced it had joined the decentralised crypto community Frog Nation. According to Daniele Sesta, of Frog Nation, the move is intended to help make Sushi “the most used DEX (decentralised exchange), and bringing the team and community spirit back to what Sushi previously was ….and seeing it rise up again.”

On 27 January Sushi tweeted that it “is aware of allegations pertaining to the larger ecosystem & are reviewing the situation. To be clear, Sushi continues to be independent in order to drive forward the goals of the protocol. Individuals in question have no access to operational/treasury wallets.”

How does SushiSwap make money?

SushiSwap charges a trading fee for transactions that increases the value of the SUSHI token, allowing holders to make a profit. If trading demand on the AMM rises, the SUSHI price will rise. So, how does it work?

Liquidity providers are rewarded with SushiSwap Liquidity Provider (SLP) tokens for staking their tokens in liquidity pools. They can stake SLPs in the “farm” and earn interest. Exchange users pay a 0.3% trading fee, of which 0.25% is added to the liquidity pool balance, so that when liquidity providers withdraw their tokens, they are worth more than when they were deposited. The remaining 0.05% is added to a SushiBar pool to be divided among Sushi holders when they withdraw their SUSHI tokens.

BentoBox allows users to deposit funds for lending in exchange for a fee. Kashi, a market built on BentoBox, allows borrowers to deposit collateral to borrow a token for gas fees or flash lending.

The remaining developers are rolling out several new features during the current quarter. At the start of November, the Shoyu NFT marketplace launched with a 10-week v0 phase featuring curated non-fungible token (NFT) drops to stress test the system.

According to SushiSwap’s quarterly update:

“State-of-the-art minting and auction technology will exist in V0, which allow whitelisted artists to display newly minted work, and sell them through a Fixed Price auction or an English auction. Artists and collectors will eventually be able to display their work within our walkable metaverse in late Q4, while our V0 metaverse will feature a curated gallery accessible to everyone to explore.”

It added: “Social tokens, fractionalising, and support for NFTs not minted on Shoyu will arrive in later versions.”

Sushi contracts operate across multiple blockchains and the developers noted in the update that it “currently has active farms on xDai, Arbitrum, Celo, Harmony and Polygon, and we will continue to add new farms on new chains. In Q4, we expect to have new farms on Moonbeam, Avalanche, and Near”.

SUSHI price declines after failed breakout

The SUSHI cryptocurrency price rose to $13.10 on 1 November, as it trended higher from the dip across the cryptocurrency markets in late September that took the price down to $8.53. It has since declined, dropping by 49% to $6.68 on 28 November.

At around $5.19 at the time of writing on 20 December, SUSHI was still up by around 80% since the start of 2021. But it has been putting in lower highs since it reached its all-time high of $23.38 on 13 March.

The price fell back to $10.20 in late April, then rebounded to $16.14 in mid-May as cryptocurrency markets rallied further. SUSHI fell again as cryptocurrency prices subsequently collapsed, bottoming out at $6.04 on 20 July before moving up to $16.10 in mid-September following the summer rally. The November spike at $13.10 was again lower than the previous peak.

What is the outlook for the SUSHI price following the decline? What do the latest forecasts suggest?

Sushi coin price prediction: can SushiSwap turn higher, or will it fall again?

On 15 February short-term sentiment was still bearish, with the SUSHI price around $4, according to CoinCodex, with 17 technical analysis indicators giving bearish signals compared with 11 bullish signal.

The Sushi coin price prediction 2023–2027 from algorithm-based forecasting site Wallet Investor predicted it could rebound to $6.87 in twelve months’ time and to $17.5 in five years.

DigitalCoin suggested that the SUSHI price could average $5.93 in 2022, $9.16 in 2025 and reach $15.6 in 2028.

The SushiSwap (SUSHI/USD) forecast from Price Prediction estimated that the SUSHI price could average $6.06 in 2022 and $19 by 2025, then jump to an average of $126 by 2030.

Gov Capital was the most bullish, predicting that SUSHI could trade at $32.5 in a year’s time, and up to $208 by the start of 2027.

The Economic Forecast Agency was bearish on SUSHI token’s future, predicting that it could trade at $2.08 by the end of 2022. It projected that the price could rebound to $4.7 by the end of 2023, $4.5 by the end of 2024 but drop to $3.8 by the end of 2025.

It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

We recommend that you always do your own research, and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never invest more than you can afford to lose.

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Read more: Ripple price prediction: where next for the XRP price?

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