SushiSwap is one of the fastest growing DeFi protocols on the market right now. Since its launch in August 2020, it has only taken the platform a year to break into the top 10 protocols. However, it seems that SushiSwap stops here and doesn’t move any further.

The question is, what is the driving force that made SushiSwap so great and what is stopping it?

Is SushiSwap growing?

To date, the Total Key Value (TVL) at SushiSwap has increased by more than 990% compared to the previous year. And currently it is also the only protocol that is based on more than 10 chains, namely 14.

This has allowed the protocol to grow so fast that Arbitrum’s mainnet, despite only launching 17 days ago, has already trapped nearly $ 30 million in it.

SushiSwaps TVL on 14 blockchains | Source: Defi Lama

Even though SushiSwap is used in 14 chains, the reason SushiSwap still ranks 10th is because of its audience.

What is preventing SushiSwap?

Its very protocol. SushiSwap is a decentralized exchange (DEX) that limits usability to those who want to swap tokens. On the other hand, since platforms like Aave are credit and monetization systems, they enable higher key value.

Because of this, Aave leads the way even though it only has 76,000 users while SushiSwap has 447,000 users. Aave’s simple and publicly available protocol resulted in TVL increasing 1,361 percent to $ 14.18 billion at press time.

Sushiswap’s pure DEX functionality is also the reason why TVL is under $ 1 million in 50% of the chains used. In fact, some only have a total of $ 26 in TVL.

Aave users overall | The source: Dune analysis

However, the remaining 50% keep up with the protocol and its token. Last week, SUSHI is up 47.38% and cracked over $ 15 before dropping back to $ 13.15 at press time.

SUSHI price table | Source: Tradingview

This resulted in bullish investors buying over 833,000 SUSHI worth $ 11.6 million on exchanges in just one day.

Dimensions Net transfer from SushiSwap | Source: Glassnode

Simply put, SushiSwap takes more capital to become a bigger log. Until then, the volatility will make investors suspicious.

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