Is SushiSwap (SUSHI) a Good Investment?

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Contributor, Benzinga
October 11, 2021

Decided SUSHI is a good investment? You can get SUSHI on Gemini and Coinbase today.

SUSHI is the native token for the decentralized exchange (DEX) SushiSwap. It is an automated market maker, meaning it uses smart contracts to allow you to trade crypto on a peer-to-peer basis. SUSHI was released in August 2020 by the anonymous Chef Nomi. With the amount of adoption it’s seen so far, the platform has the potential to become a major player in the crypto sphere.

What Is SushiSwap (SUSHI)?

SUSHI is a governance token that powers the DEX SushiSwap. It allows users to trade currencies using liquidity pools. A liquidity pool is a crowdsourced pool of funds that is used to support the trading of digital assets. When someone makes an order, liquidity is taken from these liquidity pools to execute the trade. This method is similar to the way market makers operate in the stock market. Market makers are firms that submit large amounts of orders on a particular stock so that it can continually be traded. With crypto liquidity pools, the orders are able to be continually traded from users placing funds in a liquidity pool. When users place their funds in a liquidity pool, they can earn interest. SUSHI is given as a portion of these rewards.  

SushiSwap (SUSHI) Price

SUSHI is trading between $10 and $11 in early October 2021. It has a market capitalization of over $1.3 billion and a supply of 1.2 million SUSHI. The maximum supply is 250 million SUSHI. It is currently ranked 78 on CoinMarketCap’s list of most popular currencies. In 2021, it saw lows of $0.42 and highs of over $20. It has been relatively stable for the past few months. 

SushiSwap (SUSHI) Competition

SushiSwap’s main competitor is Uniswap. The 2 platforms are similar. In fact, Uniswap creator Hayden Adams accused SushiSwap of copying Uniswap’s technology. A difference between the 2 DEXs is the fees paid to liquidity providers. Uniswap offers 0.3%, while SushiSwap offers 0.25% and an additional 0.05% paid to SUSHI token holders as dividends. SushiSwap also offers a feature allowing holders to vote on new projects to be added to the platform. While Uniswap also has this feature, the community has more of a say in the future of SushiSwap’s platform than Uniswap’s. SUSHI also offers lending markets, so users can lend and borrow currency on the platform. They are also aiming to unveil an NFT marketplace (Shoyu NFT), both of which Uniswap has not yet added. 

How to Buy SushiSwap (SUSHI)

Now that you understand the basics of SushiSwap, you may be interested in purchasing the token or other altcoins. Fortunately, doing so is fairly easy and only involves a few steps. Benzinga explains more about buying cryptocurrency here

Step 1: Open an online account.

The first step in purchasing SUSHI is to open an account on a crypto exchange. This simple step usually requires only an email and phone number in most cases. SUSHI is offered on a few exchanges, such as Gemini, Voyager and Coinbase. A cryptocurrency exchange account is the easiest way to purchase SUSHI as you can buy it directly with USD.

  • securely through Gemini Crypto's website
    securely through Gemini Crypto's website
    Best For:
    New Investors
    Rating:
    Read Review
  • securely through Voyager's website
    securely through Voyager's website
    Best For:
    Mobile Traders
    Rating:
    Read Review

    *Other fees may apply.

  • securely through Coinbase's website
    securely through Coinbase's website
    Best For:
    Coinbase Learn
    Rating:
    Read Review

    Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.

Step 2: Buy a wallet (optional). 

Wallets differ from exchanges in that they function as a decentralized place to store crypto instead of trading it. You can choose from multiple forms of virtual wallets. While having a wallet is not a necessity to purchase SUSHI, it can greatly increase the security of your assets.

Ledger Hardware Wallet
Best For
  • ERC-20 tokens
securely through Ledger Hardware Wallet's website

Best Hardware Wallet: Ledger

Ledger is a hardware wallet that is extremely easy to use and supports the sending and receiving of many currencies. Once you have purchased a Ledger hardware wallet, you download its software onto your computer and create an account. You’ll be assigned a wallet address (typically a long string of letters and numbers), and then you can send and receive crypto through the wallet. Hardware wallets offer an extra level of security as opposed to software wallets, but they cost money while software wallets are typically free. 

Best Software Wallet: ZenGo

ZenGo is a wallet that allows you to store, send and buy cryptocurrencies. When you open a ZenGo account, you will be assigned an Ethereum wallet address, and you can add other tokens via the wallet’s interface. The platform is secure, using 2-factor authentication to prevent hacks.

ZenGo is a free software wallet that supports hundreds of tokens. It also supports ACH and credit transfers, something other software wallets do not currently offer. 

Step 3: Make your purchase.

If you are using Gemini, you can fund your account and purchase your SUSHI. If you choose to use a wallet, you can send a currency to your wallet from a centralized exchange, like Coinbase (NASDAQ: COIN) or Crypto.com. From there, you swap the token for SUSHI using a DEX. The full list of convertible tokens can be found on CoinMarketCap. You can also stake currency on SushiSwap to earn SUSHI tokens as a reward. 

BZ

Bonus Section:

Keep an eye on news surrounding liquidity pool interest rates. Rate changes can impact user adoption, and hence the price of SUSHI. Also, be on the look out for any new features that may increase the value of the token.

Current Crypto Prices

In early October 2021, the U.S. government considered an executive order that would aim to regulate cryptocurrency. The plan includes a “crypto czar” to oversee crypto regulation and  would touch on "financial regulation, economic innovation and national security." This comes after a $2 trillion surge in crypto investments in 2021 alone. Governments around the world are looking to gain control over the market. However, the Federal Reserve chair, Jerome Powell, has stated that the U.S. will not follow the footsteps of China and has no plan to ban cryptocurrency. 

Is SushiSwap (SUSHI) a Good Investment?

SushiSwap provides access to hundreds of tokens that may not be readily available. It also allows users to stake their positions and earn interest. However, a lack of marketing may impact the token’s long-term growth. If SushiSwap is able to provide meaningful service and expand its reach, there could be a lot of upside that has yet to be priced in.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts
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