Tech

SushiSwap V3 announced amidst SEC subpoena: How did SUSHI react?

04/08/2023
Bitcoin Ethereum News
  • As per DeFiLlama, SushiSwap v3 was created as a hard fork of Uniswap V3.
  • Since the SEC subpoena, the DEX’s trading volume plunged 37%.

The CEO of SushiSwap [SUSHI], Jared Grey, divulged details about a major upgrade related to the decentralized exchange (DEX) on 7 April.

Realistic or not, here’s SUSHI’s market cap in UNI’s terms

Grey, who is known as the Head Chef of Sushiswap on Twitter, took to the social platform to inform investors about the protocol’s newly deployed concentrated liquidity model, V3.

DeFi analytics platform DeFiLlama had initially leaked the news about SushiSwap v3 on 6 April.

 

Another hard fork of Uniswap V3?

As per DeFiLlama, SushiSwap V3 was created as a hard fork of Uniswap [UNI] V3, which is credited as the pioneer of the concentrated liquidity model in the DeFi space. Since then, many players in the space have launched their own V3s by copy-pasting Uniswap’s code, the latest being PancakeSwap [CAKE].

CEO Grey, while ‘leaking more information,’ stated that the project’s objective was to expand to nearly 30 blockchains and emerge as the market leader in providing concentrated liquidity solution.

Well, the ecosystem needed an upgrade to keep optimism alive after it was served with a subpoena by the United States Securities and Exchange Commission (SEC) on 21 March.

It was quite evident that the network has struggled since then, as per Token Terminal’s data. Since 21 March, the trading volume on the DEX plunged 37%. A big factor behind this could be the depleting user base which shrunk 17%. These were signs that investors were wary of regulatory actions on the protocol.

Source: Token Terminal

However, the total value locked (TVL) into the platform’s liquidity pools wasn’t significantly impacted as the weekly average value remained steady over the last two weeks.

Source: Token Terminal

How much are 1,10,100 SUSHIs worth today?

Things not looking good for SUSHI

Since SEC’s subpoena, SUSHI declined by over 28% in value. At press time, it exchanged hands at $1.12, per Santiment’s data.

Since 21 March, the number of addresses involved in SUSHI transactions tumbled 43% until the time of writing. The falling interest was also exhibited by the trading volume of the coin. SUSHI declined from $82.24 million to $27.5 million at press time.

Source: Santiment

Source: https://ambcrypto.com/sushiswap-v3-announced-amidst-sec-subpoena-how-did-sushi-react/