The Price of a token is usually considered as a strong indicator of the Protocol that backs it. How true is this in terms of Sushiswap ? In this dashboard, we will look at the price correlation of SUSHI tokens to Sushiswap trading volume

First we will look into Swap transaction volume, then USD volume before we quanitfy the correlation between them.

Transaction volume has remained fairly constant and ranging, while the price has been dropping over the past month. Significant correlation is not expected.

When transaction volume is compared, we can see some correlation as the early weeks saw higher volumes and higher prices than the end of January, when both swap volume and prices were low.

Quantifying the correlation using the inbuilt correlation coefficient...

We can see that the USD volume correlation is higher than swap volume correlation. However the value values around 0.4 to 0.5 are indication of mild correlations. Hence over the month of January, there isn't any significant correlation between the SUSHI price and Sushiswap swapping activity.