Is SUSHI worth buying in June?
- SushiSwap is an automated market maker (AMM).
- It launched in September of 2020 as a fork of Uniswap.
- Its main popularity is among is DeFi traders.
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SushiSwap SUSHI/USD was created by a pseudonymous individual or individuals collectively called Chef Nomi. It is software running on Ethereum that incentivizes a network of users to operate a platform where they can buy and sell cryptocurrency assets.
It uses a collection of liquidity pools, where users need to lock up the assets into smart contracts, and traders can then buy and sell cryptocurrencies in the pools, swapping out one token for another token in the process.
In the SushiSwap Farms, liquidity providers contribute to the SushiSwap pools by connecting their Ethereum wallets to the farming software where they lock up their assets in a smart contract.
SushiSwap’s cryptocurrency known as SUSHI plays a role in maintaining as well as operating the network.
Users that hold SUSHI have a hand in the governance of the protocol by being able to vote on proposals that can potentially improve the entire ecosystem and anyone can submit a proposal for users to vote on. Users that hold SUSHi can also earn a portion of the fees that are generated by the network by staking them in the xSUSHI pool.
On May 31st, SushiSwap made a move to the Layer 2 scaling platform Arbitrum in an attempt to avoid the costly network fees Ethereum has. Arbitrum launched to mainnet on May 28.
On June 10, SushiSwap announced a collaboration with Karate Combat, the global leader in full-contact professional karate competition. This collaboration is intended to bring SushiSwap into the Karate Combat fight scene for the first four episodes of the Karate Combat Season Three set to premiere in July.
On June 11, Volatility Protocol announced that it will offer its governance token in MISO Launchpad on SushiSwap. The VOL token will be offered in this auction on June 14th.
With all of these implementations and collaborations, the price can be expected to go up due to the increased demand for their native token SUSHI. The move to Arbitrum can have its effect on the value, and so can the collaboration with Karate Combat and the Volatility Protocol.
Should you buy SUSHI?
The reduced fee with the move to Arbitrum is also bound to entice a lot of people to make the switch to SushiSwap from other platforms.
Through the collaboration with Karate Combat, SushiSwap will receive global exposure across Karate Combat online channels. This has the possibility of increasing its popularity, increase the demand for SUSHI and have SUSHI rise in price as a result.
On the other end of the spectrum, VOL is the governance token of the Volatility Protocol, and as soon as it gets offered on the MISO Launchpad, it’s bound to get some traction as well.
These developments have the potential to bring the value of SUSHI to $20 or even above if they are successful and gather a lot of interest. By the end of 2021, a more realistic prediction would be along the lines of $15 due to the switch to Arbitrum as well as the collaboration with Karate Combat, which will bring in a lot of new users.
At current levels of around $9.50 it might be a worthwhile investment if you are in it for the long term but always do your due diligence before investing.