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SUSHI’s price activity has been pretty volatile over the last year, with the asset seeing its fair share of ups and downs. In fact, it increased by more than 424 percent throughout the aforementioned time period. The alt’s rise began in November of last year, and SUSHI reached its all-time high of $23.38 in just four months.
Right after scripting history, the asset was subjected to a downtrend. Earlier in June, SUSHI lost its $9.4 support level and has been trading below that mark since then. What’s more, SUSHI that was the sixth-largest DeFi token a couple of months back, is now eighth on the list and its Total Value Locked (TVL) that reflected $4.4 billion in early May plunged to merely $2.76 billion at the time of writing.
Setting aside the price charts, the token’s on-chain metrics also hardly provided any sigh of relief.
For starters, development activity has almost always worked as a stimulant for any asset’s long-term price increase. SUSHI’s development activity began to pick up speed in the latter week of June, but it was swift enough to reverse course and begin to decline on July 6. However, at the time of writing, the curve appeared to have reached its parabolic bottom and was on the verge of going north.
At this stage, it becomes important to note that developers are currently working on SUSHI’s NFT platform – Shoyu. According to the project briefing, Shoyu would incorporate yield farming features and is expected to evolve into a 3D metaverse in the near future. This development is expected to rub off positively on the token’s price in the upcoming months.
Other measures, however, presented conflicting indications. Exchange inflows and outflows, for example, while exchange outflows have been declining since 6 July, it should be emphasised that they have, on average, been able to outnumber inflows. The overall outflow on 10 July was 966.33k, while the inflow figure for the same day was 881.15k. Now, a reduction in exchange inflows indicates that SUSHI HODLers are sticking to their holdings, which, to some extent, creates a positive narrative within the drop in outflows.
The token’s transaction volume has also been declining since 6 July and showed no indications of improvement at the time of writing. SUSHI’s daily active addresses, on the other hand, have regularly spiked once every few days, proving to be the token’s single saving grace.
Given the uncertain condition of the on-chain metrics, SUSHI’s price is unlikely to experience a major turnaround in the short run. As a result, an increase remains a long shot for the time being. Nonetheless, the NFT and DeFi space is expected to increase over time, and given SUSHI’s development activities, the token’s long-term potential is worth betting on.