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Whales Are Back for SUSHI: SushiSwap Token Rallies

SUSHI, the native token of the SushiSwap decentralized exchange (DEX) soared in price, rising by more than 21% over the past 24 hours, and is currently one of the best performing DeFi tokens on the market. 

The currency of the third biggest DEX on Ethereum is trading at $9.24 at the time of publishing, which represents a push of more than 70% over the past 7 days.

The increased demand marks the token’s attempt to break past the highest level of $9.42, set yesterday. SUSHI token reached this mark for the first time since December 6th, when it dropped to $4.93, lows which had not been seen since January 2021.

According to blockchain analytics firm Santiment, whales with 100K to 10M of SUSHI tokens in their accounts have increased their holdings by almost 10% of SUSHI’s total supply since November. This is more than 24.2 million of all available SushiSwap tokens.

One possible reason behind SushiSwap’s price recovery could be rumors that Daniele Sestagalli, the prominent DeFi figure, would be joining SushiSwap.

The talk spread after Sestagalli posted a tweet regarding a SushiSwap governance proposal that he had addressed earlier. 

SushiSwap has been going through a governance crisis for some time. One of the initial leaders behind the project’s creation in 2020, CTO Joseph Delong, recently left SushiSwap due to internal conflicts.

On the Flipside:

  • The concentration of SUSHI supply in the hands of large holders is markedly high, sitting at 86%, according to CoinMarketCap. 
  • The prominent DeFi project has previously been involved in a rug pull scam when its founder, Chef Nomi, took out millions of SUSHI tokens a week after SushiSwap’s initial launch in September 2020.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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    Author

    Simona is a fintech journalist and content editor at DailyCoin Academy, which focuses on educating new crypto investors. She entered the crypto space in early 2018, got burned, but discovered a passion for trading, and now it’s her hobby. Simona covers crypto and blockchain-related topics and takes a deeper look at what lies behind the latest industry trends.