Bitcoin

A report from Glassnode suggests that the fair value of SUSHI is only 31 cents

Research by on-chain analytics provider Glassnode has examined the economics and value of the SUSHI token and found that it may be worth a lot less than its current price.. And that comes after the price of the token fell 70% to $ 2.36 last week.

Glassnode analyst Liesl Eichholz has broken down the tokenomics of the local SUSHI token from SushiSwap. Research found that the value of log management should not be underestimated, but it is difficult to quantify what suggests it is Incentives for productive agriculture are largely determined by advertising.

The inflation rate is the main problem when evaluating the rating of SUSHI, Eichholz said, adding Newly minted tokens that are issued as rewards dilute the holdings of existing investors.

A report from Glassnode suggests that the fair value of SUSHI is only 31 cents
A report from Glassnode suggests that the fair value of SUSHI is only 31 cents

Inflation has been built into the system by nature to encourage people to actively provide liquidity.

However, investors should be aware that anyone who has SUSHI without providing liquidity will be diluted.

A buyback premium of 0.05% generated by the trading volume will be used to return the newly minted tokens to existing holders. Hence, a certain daily trading volume needs to be maintained in order to maintain a certain price.

In this diagram, the report suggested it Without insanely high volumes, a SUSHI price above $ 10 is absurd and unsustainable.

“Assuming SushiSwap has a more realistic daily trading volume of $ 400 million, The sustainable price of SUSHI would be $ 0.31, 97% lower than its all-time high of $ 11.93. “

The analyst stated that The token prices are likely to remain inflated in the short term due to advertising and a lack of understanding of the basics.

SUSHI’s price fell over the weekend when it was revealed that the founder had sold 2.5 million tokens that he had acquired through a 10% stake in the development fund.. Control of the protocol was then turned over to Sam Bankman-Fried, the CEO of FTX, the crypto-derivatives exchange, following massive community backlash.

Bankman-Fried, who is also CEO of Alameda Research, explained this SushiSwap is currently in the migration process. Add “After that, it will be managed by the community, not for me”.

SUSHI prices hit an all-time high of more than $ 11 immediately after it was launchedbut they have since set and They are currently almost 80% below this maximumAt $ 2.36, according to Uniswap’s Token Price Tracker.

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