SushiSwap’s SUSHI token ended pretty well in 2021. Everyone is currently expecting an outstanding move that begins in 2022. However, given the macro performance of this decentralized exchange (DEX), the situation could develop the other way round.
The end has come for SUSHI?
SUSHI has recovered well over the past 2 weeks. While this seems like a success, the reality is that the token isn’t doing that well right now.
When the price rose 94% it broke the downtrend line again. At the time of writing, the price is about to test this line again.
If that fails, SUSHI reverts to a month-long pattern. One thing that is very uncomfortable for investors is that this pattern continues to fuel the possibility of reaching new ATHs.
SUSHI price promotion | Source: TradingView
While the above step pulled 33% of the total number of investors out of the red, 54% of all SUSHI holders have not yet made a profit.
Investor profitability SUSHI | Source: Intotheblock
In addition, the growth rate of SushiSwap has been falling steadily since November and it has not only failed to attract new market participants, but also failed to keep old users. Notably, the weekly investor metrics are down 10,000 for new users and 6,000 for old users.
When the price started to go up, there were 9,000 new users. However, the upward trend cannot be sustained for long.
New user at SushiSwap | Source: dune
As a result, the number of on-chain transactions drops by an average of 40,000 / month. This has resulted in a volume decline of over $ 6 billion in just 2 months. As a result, the January performance forecast has been downgraded to just $ 9 billion.
Monthly volume at SushiSwap | Source: dune
Part of the reason for this also lies with investors as they are not typical long-term owners. The interesting thing is that SUSHI owners sell as soon as they make a profit.
For this reason, the average holding period of SUSHI is only 2.5 months.
Average SUSHI hold time | Source: Intotheblock
Active network usage is essential for any asset to function properly. When a DEX like SushiSwap is battling for one of the top three, their investors can act as a great motivator by providing HODL and support. That way, the SUSHI token and investors can have a good first month of the year.
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