Try Quests to earn cryptoSushiswap Sushi Activity on Ethereum
Sushi is a community-driven organization built to solve what might be called the “liquidity problem.” One could define this problem as the inability of disparate forms of liquidity to connect with markets in a decentralized way, and vice versa. While other solutions provide incrementally progressive advances toward solving the problem of liquidity, Sushi’s progress is intended to create a broader range of network effects. Rather than limiting itself to a single solution, Sushi intertwines many decentralized markets and instruments.
Thus far, the core products, which will be described in more detail here, include: a decentralized exchange, a decentralized lending market, yield instruments, an auction platform, an AMM framework and staking derivatives. Sushi’s products are configured in a way that allows the entire platform to maintain decentralized governance of SUSHI token holders, while continuing to innovate on the collective foundations by design. Whereas major structural changes are voted on by the community, the day-to-day operations, rebalancing of pools and ratios, business strategy and overall development is ultimately decided on by our core team.
Source: docs.sushi.com
In this work, we want to analyze the effects of the recent increase in market fluctuations on sushi activity on the Ethereum from different perspectives, including:
- 1 - Number and volume of swaps in the last 90 days.
- 2 - Assets with most swap_to and stablecoins status.
- 3 - Whales activity
- 4 - Lendings activity
Note:
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For the analysis, we use the data from the
[ethereum.sushi.ez_swaps]and[ethereum.sushi.ez_lending]tables. -
Because bitcoin has the highest dominance in the cryptocurrency market and bitcoin price fluctuations have the greatest impact on the market. Therefore, we compare the obtained data with the price chart of Bitcoin in the 1-day timeframe.
Image source: TradingView
According to the charts above:
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The sharp fall in the price of Bitcoin started on May 5, 2022, from 38K $ and on May 12, 2022, it reached about 26K $. This sharp drop in price has led to an increase in the number of swaps and the volume of swaps on sushiswap, as shown in the graphs.
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The highest swap volume (385.41 million $) and the highest swap volume (21.79 K) in the last three months was recorded on sushiwap on May 12, 2022.
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The price of Bitcoin also experienced another big drop from June 7, 2022 to June 18, 2022 ( from about 31K $ to about 18K $, which again caused the volume and number of swaps in sushiswap to increase.
According to the charts above:
- A large percentage of user assets have been swapped to WETH.(44.1% worth 3.28 million $)
- After WETH, 34% of the swap volume is related to other altcoins except for stablecoins(including USDC, USDT, and DAI).
- 21% of the volume of swaps is related to the stablecoins of DAI, USDC, and USDT.
- In severe Bitcoin price declines that increase the number and volume of swaps, the volume of swaps to stablecoins increases.
- According to the chart of swap volumes to stablecoins, the largest volume of swaps to stablecoins is related to USDC, followed by USDT and DAI.
- The USDT is constantly losing market value against the USDC after negative news about the non-transparency of Tether collateral for this stable coin.
- Also in the heavy fall of the market on May 12, 2022, this stable coin was temporarily de-peg due to market pressure and its price reached about 94 cents, which, along with the lack of transparency of Tether's collateral for USDT, reduced users have trusted it.
We have considered whale transactions as swaps with a volume of more than 300,000 $.
As can be seen in the chart, whale activity has also increased on days when prices have plummeted.
According to the above results:
- There is no specific pattern for withdrawing capital in market declines.
- The highest amount of withdrawing capital is related to DAI with a volume of 1.7 million $ on May 30, 2022, and the second rank is related to the withdrawal of 1.2 million $ on June 27, 2022.
- After falling prices, usually providing capital for lending is done via stablecoins.
- Sharp moves in the price of bitcoin increase the number and volume of swaps on DEXs, which is examined here by sushiwap.
- When prices fall, most users tend to convert their assets to stablecoins to avoid further losses.
- The high volume of swaps for WETH indicates the users trust in this asset, which can withstand negative price changes again in bad market conditions. When the market
- After falling prices, usually providing capital for lending is done via stablecoins.