Something you should know about this new element of Sushiswap

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Sushiswap’s new produce farms boost SUSHI’s pricing. SUSHI’s market value was $1.5 billion when it traded at $11.92. Among the major DeFi efforts this summer, SUSHI’s rally has paved the ground for DeFi 2.0. At the current market level, huge HODLers held 89 percent of the coins, and the network facilitated $1.38 billion in transactions during the last week.

According to IntoTheBlock statistics, on-chain sentiment was gloomy; 31 percent of HODLers are profitable at the present price level. The significant short-term ROI explains why 75% of SUSHI’s HODLers have held the currency for less than a year.

The optimistic narrative is bolstered by new yield farms on SUSHI on 0xPolygon. WOOFY, FRAX, FXS, and GRT, among others, have debuted on SUSHI, and these new yield farms are the equivalent of increasing network activity and social volume. SUSHI demand is expected to rise, and traders are concerned that APYs are now overvalued.

What you need to know about SUSHI's new yield farms

Source: Twitter

Because APYs take into account trading costs, token rewards, and compounding. A 10-20% token payout may appear as a 100% compounded return, explaining the inflation of APYs. Volatility is critical to SUSHI’s pricing, and on volatile days, trading costs on the network are high. Despite the fact that yield farms drive the positive narrative, investor inflows to SUSHI have decreased, falling 19.2 percent last week.

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This decrease in investment inflows may have a negative influence on the pricing of the DeFi project. 25 percent of SUSHI’s significant investors have held the cryptocurrency for less than a month, yet it has provided double-digit gains. The SUSHI network has expanded by 2.46 percent in the last week, which is reflected in the increased 24-hour trading volume.

The volume on spot exchanges has surged as a result of an increase in social media mentions and volume. Furthermore, the most recent collaborations with liquidity mining initiatives are increasing demand for SUSHI. Despite the fact that the price is still more than 50% below its three-month high of $23.38, the newest reports indicate that the surge will be prolonged this summer.

The increase in the number of monthly users lends credence to the rally’s storyline. SUSHI has over 82000 new users in May 2021, with transaction volume increasing by 116% and users increasing by 31%.

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