Volume Market Share
Question 41: Show daily transaction volume on Sushiswap as a proportion of the total volume across all of the DEXs over the past 60 days.
Battle of The DEXes
Like traditional finance which has forex markets to facilitate the exchange of the currencies of sovereign states, decentralized finance, popularly known as DeFi also has decentralized exchanges (DEX) where tokens of different kinds are exchanged in a permissionless manner.
With Ethereum being the leading blockchain in smart contract technology, it gave birth to cutting edge DEXes like Uniswap, Sushiswap, Curve, Balance etc.
The result of these rapid innovations in decentralized finance is a fierce battle for supremacy among the protocols. It is not uncommon to see on social media that DEXes are touting new records broken.
In this regard, we wish to analyze the trading volume on Sushiswap in proportion to the trading volume across all dexes over the past 60 days.
The Sushi Size
The sushi size is a metaphor for how much trading volume in proportion to all other DEXes has Sushiswap been able to capture over the past 60 days.
Here are some definitions to give the investigation context:
- The investigation is confined to the Ethereum layer 1 network.
- "Other DEXes" used herein refers to Curve, Uniswap v2, and Uniswap v3 (These are the DEXes whose data are indexed on flipsidecrypto)
The area chart below shows the proportion of trading volume done on Sushiswap in relation to other DEXes on the Ethereum layer 1.
On average, we can deduce that Sushiswap is responsible for about 5-10% of the total on a regular. On some good days, Sushiswap accounts for about 20%. On very good days Sushiswap takes about 55% as seen on January 17, 2022.