Decentralized exchange SushiSwap has been neglected since 2021-end, with busted deals and internal conflicts damaging its image within the community, However, with roadmap 2.0 proposing major structural changes to the team, it will be interesting to see whether SUSHI can regain its relevancy once again and overcome the declining state of its network.
Once a prominent player in the DeFi market, investors have looked away from SushiSwap’s following a host of leadership exits and internal conflicts within the team. Bitcoin woes this year have only made matters worse, with SUSHI one of the biggest losers among the top 120 coins by market cap. To renew investors’ interest, a major change was required and developers may have found some answers to their problems.
In comes SushiSwap 2.0. The roadmap, released yesterday, placed a heavy emphasis on restructuring the SUSHI leadership team and included technical changes such as an upgraded Automated Market Maker model, a new launchpad for raising capital and a revamp of the NFT marketplace, Shōyu.
SUSHI Down in the Dumps?
Around the time of the update, SushiSwap’s network was suffering from a mass exodus, and details on a roadmap did not alter the bearish sentiment. The project’s current Total Value Locked fell constantly throughout April and was down by 50% from its November peak.
Data collected from exchanges did not paint a pretty picture either. Large investors were reducing their positions amid market uncertainties. Large Holders NetFlow was down by 97% over the past 3 months, suggesting that those holding over 0.1% of SUSHI’s circulating supply were dumping their tokens and were not keen on rebuying.
SushiSwap Daily Chart
A bearish bias was visible on the SUSHI daily chart, with the candles trading below their 200-SMA. However, the price was approaching a safe zone around $2.75 and it will be interesting to see whether an organic rally can finally take shape heading forward.
Conclusion
SushiSwap has remained in the backwaters of the crypto market for far too long. Whether or not its proposed changes to the leadership team and network would instill confidence amongst investors remains to be seen, but a coordinated bullish effort would be needed to lift SushiSwap from its dire straits.