If You Don’t See Sushiswap Catching Up to Uniswap, You Should See An Optometrist: Delphi Digital
With Sushiswap as the real competitor, Uniswap V3 is going to be mind-bending.
DeFi tokens are enjoying an uptrend while Bitcoin, Ethereum, and altcoins are still working on their recovery.
Amidst this, DEX SushiSwap is evolving as a ‘blue chip’ project after a rocky start. While the project was a copycat of popular decentralized exchange Uniswap, it has been working on differentiating itself, which, as we reported, is helping it gain the market share in DEX space while Uniswap is losing it.
As for how is it differentiating, Delphi Digital’s latest report on “A Tale of two DEXes” highlights it in terms of margin trading, integration incentives, cross-chain swaps, co-building yEarn's Deriswap, and new AMM model, among a few things laid out in SushiSwap’s 2021 roadmap.
“Each of these features improves Sushiswap and SUSHI value accrual,” noted Ashwath Balakrishnan, an analyst at Delphi Digital.
Also, SushiSwap has captured a “community-owned” narrative, while with Uniswap, there is a lack of transparency with the upcoming V3.
“Uniswap v3 will likely change the game, but nobody knows what exactly it entails,” argued Balakrishnan, only to add that Uniswap is the one that built out the AMM tech – “DeFi's biggest innovation” with a $100k grant and does billions of dollars in weekly volume.
Uniswap is a $1.6 billion market cap asset whose governance token UNI is trading at $5.78 while Sushi is half of that at $577 million while trading at $4.57.
Uniswap’s high market cap could be because of “insane” cash flows. But while the 0.05% fees on trading volume of Uniswap go to a community-managed treasury, Sushiswap's go directly to SUSHI stakers.
Sushiswap is also seeing its liquidity steadily increasing since Nov. 2020, making it the second-largest DEX.
While Uniswap clearly has more users and traction, there are some tokens that enjoy superior liquidity on SushiSwap, not to mention only it has a volume that comes close to Uniswap.
However, there's a sizable gap in volume, with Uniswap recording $5.69 billion during the Jan. 3-9 2020 week compared to Sushiswap’s $3.39 billion.
But “if you don't see Sushiswap catching up, you should see an optometrist,” wrote Balakrishnan.
“You have to be crazy to think Uniswap v3 isn't going to be mind bending OR to think Sushiswap isn't a real competitor with everything it has achieved and is rolling out this year.”