SushiSwap’s SUSHI has been in trouble for a while, but its price action problems are not limited to the spot market as performance in the DeFi market has also been rather lackluster. Even so, SUSHI is very dependent on Bitcoin and it seems that only Bitcoin can save it.
SUSHI keeps falling
While there are many other DeFi protocols that are doing well and recovering, SushiSwap consistently dropped in total value locked (TVL), sliding from $7 billion to $5.4 billion, losing 22% of TVL in 10 days.
Not only that, the trading volume of SushiSwap also decreased by 50.76%. And, of course, SUSHI spot prices are also affected.
SUSHI price action has dropped 23.34% in the same time period and on top of that, it has lost over 38% of its active addresses. When people are losing money, they are getting out of the market.
This has also resulted in lingering selling pressure over the past few days, with some long-term (LTH) holders having also reduced their holdings.
LTH’s decision really hit SUSHI heavily as it witnessed a bad November and investors are suffering severe losses. For example, profitable addresses dropped to just 29%, the lowest level in 6 months.
The only chance of redemption is that the whales are still unsold, even though 65% of the supply is dominated by whales.
The recent launch of the NFT and Shoyu Metaverse markets is likely to act as a trigger. However, since the NFT hype is dead and sales are in the $40 million range, it’s unlikely to make a significant impact.
As the correlation with Bitcoin remains high, any major gains in Bitcoin could help SUSHI recover. Otherwise, it will remain as low as $9.09.