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SushiSwap (SUSHI): Check out Details of New Roadmap

Fri, 01/20/2023 - 01:30
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Sabrina Martins Vieira
Find out how aggregator routers and NFTs may bring SushiSwap back to center of DeFi
SushiSwap (SUSHI): Check out Details of New Roadmap
Cover image via U.Today

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Recently, the cryptocurrency market has undergone significant transformations, impacting various facets of blockchain technology, including decentralized finance (DeFi). Among those affected by these changes is DEX SushiSwap (SUSHI). However, the team behind SUSHI has been actively seeking means to regain momentum and recover from these shifts. To this end, the team has presented an action plan — a new roadmap — to facilitate this objective.

Between 2020 and 2021, there was a hype of tokens focused on DeFi and SUSHI managed to stand out, reaching its all-time high in this period. However, among the tokens from decentralized exchanges, it lost the most capitalization when the excitement subsided.

In March 2021, SUSHI was ranked 40th on the market. However, with the bear market that took hold in 2022, the token was dropped to 112th place. Although a correction was also seen in tokens from other DEXes, it was not as severe. For example, when analyzing Uniswap's UNI token over the same period, it moved from 8th position in capitalization to trading at 18th at the time of writing.

This drop was also seen in the total value locked of SushiSwap. In November 2021, it was equivalent to $8 billion and has fallen to $460 million at the time of writing. In comparison, Uniswap's TVL, which also underwent a correction, went from $9 billion to reach $3 billion in the same period.

But what could have motivated this fall?

SushiSwap boasts a user-friendly platform, distinguishing it from many of its competitors. However, the protocol currently faces challenges in terms of user retention. Specifically, the monthly retention rate, or the percentage of users who continue to use and engage with the protocol, has been low.

This factor may have contributed to the drop in the DEX's total value locked. In addition, its technology loses out to other protocols, with a limitation on the tokens its users can trade. For liquidity and trading diversification, it ends up not being one of the best choices, even if it can optimize its platform for new users.

Scenario may change

On Jan. 17, SushiSwap announced its intention to enhance its ecosystem by integrating support for independent collections of non-fungible tokens (NFTs) and launching its aggregator routers. These endeavors are aimed at enhancing the current platform and increasing the user base on the decentralized exchange.

Aggregator routers have the potential to enhance user retention on the DeFi platform by improving the user experience. These routers offer a centralized interface for users to access multiple decentralized exchanges and obtain optimal trading rates for their transactions. This feature is vital in fostering user satisfaction and promoting engagement on SushiSwap.

Jared Gray, head chef at SushiSwap, said that the presented roadmap can make the DEX the market leader. As such, in addition to the aggregator routers, we can expect to see an increase in liquidity on the DeFi exchange in the first quarter of this year. He expressed confidence that these initiatives will bring success to SushiSwap and position it as one of the leading options on the DEX market.

By focusing on NFTs, SushiSwap aims to allocate funds and resources to support its ecosystem of non-fungible tokens. This could be an important strategy for the DEX's success, as NFTs have attracted people who are not traditional cryptocurrency investors but wish to explore this industry. SushiSwap can be an accessible and attractive platform for these new users.

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About the author

Sabrina has been creating content for the cryptocurrency market since 2018. Her career includes work for important news portals in Brazil, such as Cryptonizando and Guia do Bitcoin.
In addition, she is a partner of the portal and YouTube channel É Top Saber.
Her passion for blockchain news and education led her to create the news portal Bolhacrypto.
In order to help companies and projects in the cryptocurrency market to develop, Sabrina has been leading Varandacrypto, a company that offers content for blockchain projects.