Market Volatility II
In This analysis, You will Read about the effects of the recent spike in market volatility on the Sushi Token. I went through the Sushi token and analyzed these parameters:
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What was the supply and demand dynamic for it?
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What did the liquidity of SUSHI on Uniswap and sushiswap look like?
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How about the staking situation for SUSHI? Did many SUSHI’s get unstaked?
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- All data in this analysis is from May 5th until May 15th on Ethereum network.
This analysis has three parts:
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Supply and Demand
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- Using ez swaps to find the number and volume of buy and sell of Sushi tokens. Sushi token address : 0x6B3595068778DD592e39A122f4f5a5cF09C90fE2
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Liquidity of Sushi on Uniswap and Sushiswap
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- using dex swaps to find the number of Liquidity pools per Uniswap and Sushiswap
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Staking and Unstaking of Sushi
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- When a user stake Sushi the equal amount of XSUSHI is minted and when a user unstaked the equal amount of Sushi is burnt. So I looked at Xsushi to find number and volume of stake and unstake. Xsushi address : 0x8798249c2e607446efb7ad49ec89dd1865ff4272
In these charts, you can see the total number and volumes of Buy and sell Sushi tokens from May 5th until May 15th on Ethereum Network. First, let's start with the total number of buy and sell. The supply and demand are almost similar to each other. Only on May 11th, The request for selling Sushi tokens was higher than for buying sushi. About 548 wallets tried to sell their Sushis and about 322 wallets tried to Buy Sushi tokens. The black line in the above is Daily Sushi token price. As you can see total buys and sells of Sushi increased when Sushi price dropped.
The below chart shows the total volume of the above transactions in USD. The trends are almost like the previous chart. We can't say that The demand for selling Sushi was higher than for Buying. because on May 11th, nearly 6M dollars were sold and on May 13th, Nearly 6M dollars were bought. It's better to say that at the beginning of the volatility, More users sold their Sushis but after a huge dropped in price, More users bought Sushi.
The below Cumulative chart proves that From May 10th until May 15th, More Sushi selling happened instead of Buying. The difference became a little higher in comparison to the other days.
The below chart shows the liquidity volume of Sushi on Sushiswap and Uniswap. As you can see, the most liquidity happened on Sushiswap. The volume on Uniswap is not too much. The highest volume happened on May 11th which was 128K dollars. On the same day, liquidity of Sushi on Sushiswap was 8M dollars. The difference is huge.
These charts show the Stake and Unstake of Sushi activities. The above chart shows the total number of stakes during the market volatility. The Number of stakes and unstakes were similar to each other. But in my opinion, the total number of stakes and unstakes is not important. What is important is the volumes of stake and unstake.
The below chart shows volumes of stake and unstake during the market volatility. As you can see more unstake of Sushi happened in comparison to stake Sushi. About 1.5M dollars of Sushi unstaked on March 9th ( The beginning of volatility) with 1.5M dollars. On the same day, about 500K dollars of sushi were staked. On May 10th, 428K dollars were unstaked, and only 150K dollars of Sushi was staked. A huge volume unstaked on May 15th. About 6.4M dollars of Sushi unstaked on that day.
The cumulative chart proves that users unstaked Sushi more than staking.
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Each volatility has the same pattern. Users who staked their tokens, Because of fears, try to unstake their amounts to save their money. This pattern happened On Sushi.
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The demand for selling tokens to Stablecoins or stable tokens like BTC increases.
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If a token was popular among tokens like BTC or ETH, Users prefer to sell other tokens and buy these tokens.
Written by Hess
where
discord_id: hess#0890
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twitter_id: @hessaminanloo