Going forward, SUSHI might be looking at some consolidation since the market might have to cool down
The broader market has begun to correct to find a more suitable level for recovery. However, Axie Infinity (AXS) and SushiSwap (SUSHI) appear to be running too far from their +6% drop at press time.
SUSHI got a raw deal in March, but will April be any different
For AXS, the events that took place a few days ago (the Ronin hack) have meaning and account for its price drop. However, it didn’t work for SUSHI – the second-largest DEX this week with a $269 million volume.
Regardless, this is just another addition to SUSHI’s dwindling investor interest. For example, the monthly volume traded on-chain is slightly higher than previously seen.
This month’s prediction for volume is expected to surpass $4.4 billion, even though SUSHI only recorded $3.65 billion worth of transactions last month. However, there is a chance that this prediction will come true because the on-chain metrics all show the same.
SushiSwap monthly volume | Source: Dune
First of all, there has been a significant increase in the number of transactions made on the DEX, which has reduced the platform’s usage.
And with this increase in trading comes an increase in volume. The weekly numbers have climbed the charts thanks to its recent uptrend, with its price action reinforcing the positive sentiment in the market.
SushiSwap DEX weekly quantity | Source: Dune
A minor future concern will be the number of users on the DEX. For most of the January-April period, newcomers to the DEX didn’t register a frenzied growth rate. It’s notable here that March performed better than February in that respect.
In contrast, daily new users fell to a 4-month low in April. Only 470 users read the metric in question at the time of writing.
SushiSwap daily average new users | Source: Dune
On the other hand, investors have grown steadily. SUSHI might be considering some consolidation as the market may have to cool off after the RSI approaches the overbought zone.
The altcoin has a long way to go, especially since it has yet to recover its year-to-date losses.
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