Sushiswap is a promising project for a bull cycle
Sushiswap, a decentralized exchange that appeared in the first era of DeFi sector development, is a fork of Uniswap. The project has gained popularity through the release of its native SUSHI token and the attraction of active Uniswap users.
In early May, Sushiswap launched the ability to launch concentrated liquidity pools (CLP) that offer a number of advantages over traditional liquidity pools. Some of the benefits of CLPs are:
Sushiswap is currently the closest competitor to Uniswap in the key metrics of Price/Fees and Price/Earnings, which shows the soundness of the product and business.
If we look at Sushiswap in terms of technical analysis and charts, we see that Sushi is currently trading in the price range of November 2020, if we look at the SUSHI/ETH pair which shows us the ratio of the asset to ETH, we see that since March 2021, Sushi has been in a long downtrend and has been losing the dominance for 2 years now at the lowest level.
If we are sure that the current price movement is bullish and we came out of the bearish cycle, from the analysis of previous bullish cycles, we can set the basic levels for taking positions in SUSHI and expect the start of the alt season, when the project should show positive dynamics and win back the dominance lost from ETH. As a rule of thumb, a full-fledged alt-season begins at the end of a bull cycle about 600 days after the exit from a bear market. So readers, you definitely have time to read this article, DYOR and prepare for this stage as much as possible.
In early May, Sushiswap launched the ability to launch concentrated liquidity pools (CLP) that offer a number of advantages over traditional liquidity pools. Some of the benefits of CLPs are:
- Increased profitability for pool participants: in a CLP, liquidity is concentrated around a certain price range, allowing participants to get more profitability when trading tokens.
- Reduced gas costs: In a CLP, transactions can be executed faster and with lower gas costs because the prices of tokens in the pool remain stable.
- Greater efficiency: CLPs allow you to create pools of liquidity with greater efficiency because participants can get more return for their liquidity than in traditional pools.
- Faster and cheaper trading: due to a higher concentration of liquidity, trading tokens in a CLP can be faster and cheaper, providing a better trading environment.
- Due to this and Sushiswap's strategy of spreading to as many networks as possible, this could potentially increase the project's impact on the DEX segment.
Sushiswap is currently the closest competitor to Uniswap in the key metrics of Price/Fees and Price/Earnings, which shows the soundness of the product and business.
If we look at Sushiswap in terms of technical analysis and charts, we see that Sushi is currently trading in the price range of November 2020, if we look at the SUSHI/ETH pair which shows us the ratio of the asset to ETH, we see that since March 2021, Sushi has been in a long downtrend and has been losing the dominance for 2 years now at the lowest level.
If we are sure that the current price movement is bullish and we came out of the bearish cycle, from the analysis of previous bullish cycles, we can set the basic levels for taking positions in SUSHI and expect the start of the alt season, when the project should show positive dynamics and win back the dominance lost from ETH. As a rule of thumb, a full-fledged alt-season begins at the end of a bull cycle about 600 days after the exit from a bear market. So readers, you definitely have time to read this article, DYOR and prepare for this stage as much as possible.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.