effect: why SushiSwap (SUSHI) is up 75% in one week

Improving fundamentals and a major merger with could help SushiSwap re-establish itself as one of the dominant DeFi platforms

Over the past 10 days, the price of SUSHI, the native token of the decentralized exchange SushiSwap, has increased by 33%.

At its monthly peak, the governance token had risen 75%, but Bitcoin’s recent 10% correction has negatively impacted SUSHI’s price action. One of the main factors behind SUSHI’s bullish move was a strong relief rally in the decentralised finance sector following a prolonged correction that dominated October.

The most obvious catalyst for SUSHI over the past two weeks has been its merger with DeFi giant

On 1 December Andre Cronje, the creator of, announced a merger with SushiSwap. Over the next week, the price of SUSHI increased by 75%, from $1.541 to a peak of $2.496.

How the merger with adds value to SushiSwap
SushiSwap is a decentralised exchange operating on the Ethereum network. It began as a fork of Uniswap, the largest decentralised exchange in terms of volume. Through the SUSHI token governance, SushiSwap allows users to control the protocol; in return, SushiSwap distributes a portion of the fees received by the exchange to the token holders.

In September, after reaching an all-time high of $15.97 on Binance, the price of SUSHI suddenly collapsed below $1 following the unexpected sale of $12 million in SUSHI tokens on the spot market by Chef Nomi, the project’s lead developer.

As reported by Cointelegraph, after the community reaction, Chef Nomi returned the funds and transferred control over the project to other developers.

Shortly after the return of the funds, the project started its revival. In the meantime, ownership of the project was handed over to FTX CEO Sam Bankman-Fried. At first, members of the DeFi community perceived this migration as a hostile takeover, but SBF explained:

„I didn’t build SushiSwap. I was summoned and I am doing my best to do the right thing. But it seems that many people are distracted to criticise those who are trying to solve the problem. And I’m not the only one who feels that way.“
SushiSwap has since had a positive turnaround and, eventually, transaction and trading volumes on SushiSwap have returned. According to CoinMarketCap’s data, SushiSwap has processed $51 million in the last 24 hours. Considering that the altcoin market took a hit following Bitcoin’s correction, this figure is relatively high.

The merger between SushiSwap and is interesting for several reasons. First, it means that SushiSwap will become part of the ecosystem. Second, it created a strong synergy between the two projects, as needed a bespoke automated market maker. On 1 December, Cronje wrote:

„In the past I’ve been outspoken about the things SushiSwap has done wrong, but I can’t help but point out how much they’ve done right. In these last few weeks of interacting with 0xMaki I have developed immense respect for his character, abilities and accomplishment.“
What does the future hold for SushiSwap?
In the short term, volume is the key to SushiSwap’s continued growth and bullish trajectory. Currently, Uniswap’s daily volume amounts to approximately $300 million, six times that of SushiSwap.

„We are pleased to announce the start of our audit, yes an audit… for @SushiSwap. Credit goes to @0xMaki for his excellent work in coordinating this.“

In addition to increasing trading volume and active addresses on the platform, SushiSwap is to initiate other collaborations with relevant entities in DeFi and the crypto industry in general.

On 5 December, Quantstamp announced that it had initiated an audit of SushiSwap’s protocol. Once completed, it could further strengthen investor confidence in the exchange and attract more traders to the platform.