Key Points:
- Both Uniswap and SushiSwap are good investments.
- Uniswap has an edge because of its market dominance.
- Sushiswap recent internal governance issues favor Uniswap.
Sushiswap (SUSHI)
SushiSwap is an Ethereum-based token that holders can use to participate in community governance and earn transaction fees. The project was built with the goal of simplifying cryptocurrency trading, while also providing more transparency by allowing users access not only through desktop but mobile apps as well.
Uniswap (UNI)
The Uniswap protocol is an exciting new way to trade cryptocurrencies on the Ethereum blockchain. It’s designed for exchanging any ERC-20 tokens, which means it can be used by anyone in possession of these crypto wallets. The system functions without trusted intermediaries so funds remain safe no matter what happens with censorship resistance and security at its core; this makes trading easier than ever before because there are fewer steps involved.
Which one is a better investment?
With DeFi on a growth trajectory, both Uniswap and Sushiswap are likely to grow in adoption all through 2022. However, Uniswap has better prospects for exponential gains.
One thing that plays in Uniswap’s favor is its market dominance. Uniswap currently dominates decentralized trading and is also the most known. In essence, as more investors gravitate towards decentralized exchanges, they are likely to look to Uniswap first, then the other exchanges.
With its market dominance advantage, Uniswap is likely to benefit from more awareness about the risks of centralized exchanges, such as hacks, lack of privacy, and censorship.
Besides, Sushiswap has been going through a number of internal wrangles that put it at a disadvantage when compared to Uniswap. That’s because the market as it is at the moment is highly volatile, which means investors may shy away from excessively risky cryptocurrency assets.
