- SushiSwap is getting help from popular subreddit to boost users on its platform
- The price of SUSHI fell as whales lost interest
While DEXs have gained popularity following the collapse of FTX, competition within the industry has also increased. SushiSwap is one of the DEXs that has struggled to outperform its competitors during this period. To further improve the protocol experience and attract more users, the DEX is now partnered with one of the largest crypto subreddits.
Is your wallet green? Check out the Sushi Profit Calculator
The subreddit is called r/CryptoCurrency and has 6.1 million users. This subreddit has a native token known as MOON, which is used to reward users based on their activity and Reddit karma. The subreddit has joined the Sushi double onsen program which incentivizes SushiSwap users with extra MOON on top of the current rewards and allowances.
This move has positively impacted the SushiSwap protocol and helped attract a large number of daily active users. In fact, according to Artemiz data, the number of active addresses on the SushiSwap network has increased by 41.2% in the past week.
At the time of writing, the total number of active addresses on the SushiSwap network was a whopping 13,113.
Source: Artemis
Due to the high activity on the protocol, gas consumption on the network also increased. The high gas consumption helped improve the overall revenue generated by the SushiSwap protocol.
Additionally, according to Token Terminal, revenue generated by SushiSwap alone is up 22.1% in the past 30 days.
Source: token terminal
Although the protocol registered positive updates in multiple areas, it is still vulnerable to trades with high slippage that may negatively affect the protocol.
Not all good news
Overall, SushiSwap saw improvements in many areas. However, the same cannot be said for the SUSHI token. Over the past month, the price of the token has dropped by 12.51%.
Whales began to lose interest in the token during the same period. A decline in interest in whales could have played a role in the falling prices of the token.
Realistic or not, here is SUSHI’s market cap in terms of BTC
In addition, the speed of the token also decreased. A decrease in speed means that the frequency with which SUSHI is traded has decreased. In conjunction with that, SUSHI’s network growth also declined, implying that new addresses are not showing interest in the token.
Source: Sentiment
At this time it is uncertain whether improvements to the SushiSwap protocol will directly affect SUSHI.