Tuesday, 5 January 2021

SushiSwap (SUSHI) Drops 14% as Ethereum Tumbles Under $1,000

SushiSwap (SUSHI) has dropped 14% in the past 24 hours as Ethereum has slipped lower. The leading decentralized finance-focused cryptocurrency is the worst-performer in the top 100 cryptocurrencies by market capitalization.

Despite the strong drop in the SUSHI price, the coin remains up over 25% in the past seven days. This 25% performance makes it one of the better-performing digital asset in the top 100, aside from coins like AAVE, NXM, Ethereum, Synthetix Network Token, Polkadot, and Dogecoin.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

SUSHI Price Spikes Lower

SUSHI is dropping as Ethereum has slipped from highs near $1,200 to $1,000 as of this article’s writing. Earlier today, the cryptocurrency traded below the key psychological level of $1,000.

Chart of SUSHI's price action over the past few days from TradingView.com

SUSHI traded as high as $4.15 on leading exchanges yesterday as Ethereum shot higher. The cryptocurrency was seeing large capital inflows from Bitcoin into ETH, then into these DeFi plays.

SUSHI’s price action remains extremely volatile, swinging between key price levels one after the other.

Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Bullish Trends for SushiSwap

This drop in the price of SUSHI comes in spite of broader positive trends for SushiSwap.

“BoringCrypto,” a contributor to the protocol, explained on December 21st that he is getting ready to release BentoBox. BentoBox will be a “single vault that holds all tokens” for a number of purposes, including but not limited to a money-market for margin trading.

The first application for BentoBox will be a lending solution that will allow users to margin trade (long or short) long-tail assets listed on SushiSwap. This is expected to be bullish for SUSHI because fees from this segment of the protocol will likely accrue to holders, which should thereby increase the cryptocurrency’s price.

The contracts for this application are currently under audit:

“The smart contracts for BentoBox are currently under audit by Quantstamp and Peckshield. The Peckshield audit is wrapping up with all issues addressed. The Quantstamp audit will probably wrap up in early January… Realistically, I’m hoping to see the first release go out in mid January.
The first release will give access to the basic features of BentoBox Lending for a predefined set of collateral-asset pairs.”

SUSHI’s rally yesterday also came as the decentralized exchange recorded all-time high volumes and total value locked.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Unsplash
Chart from TradingView.com
Price Tags: SUSHIUSD, SUSHIBTC
SushiSwap (SUSHI) Drops 14% as Ethereum Faces Drop Under $1,000

Credit: Source link



source https://cryptonews.wealthsharingsystems.com/2021/01/sushiswap-sushi-drops-14-as-ethereum-tumbles-under-1000/

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