DeFi protocols Uniswap and SushiSwap continue claiming new all-time highs as trading volume skyrockets

  • Uniswap and SushiSwap DEX volume skyrocket alongside their massive price action.
  • SushiSwap emerges as the biggest Uniswap competitor, disapproving critics.

UniSwap UNI) and SushiSwap (SUSHI) continue posting new record highs, ignoring the uncertainty brought into the market by Bitcoin (BTC). At the time of writing, UNI is exchanging hands at $9.42 following a minor retreat from price levels close to $10. On the other hand, SUSHI is trading at $8.4 barely a day after hitting a new all-time high at $8.

SushiSwap proves it is not an opportunistic copycat

Following the launch of the token, SUSHI in August 2020, many immediately branded it an opportunistic coin that aimed at taking liquidity from the established Uniswap protocol. SushiSwap was then engulfed in drama when its CEO left with a fair amount of the token's supply.

However, five months later, SUSHI has proved to the cryptocurrency community that it is a worthy Uniswap competitor. Besides hitting new high after new high, the token's decentralized exchange (DEX) has hit record highs in January.

Uniswap leads in DEX volume around $5.8 billion at the time of writing but is closely followed by SushiSwap at $3.2 billion. The growth in SushiSwap volume is massive despite Uniswap's lead, especially when its only 569 pairs are considered UNI's 28,428.


DEX volume chart

Meanwhile, the 4-hour chart highlights the formation of an ascending wedge pattern. A reversal may come into the picture if SUSHI/USD fails to overcome the resistance at $8. The bearish outlook forms when an asset's price ascends with pivot highs and lows while converging at a single point referred to as the apex.

A breakdown usually occurs before the trendlines converge. The typical breakdown is mostly confirmed by decreasing volume (highlighting a divergence between volume and price). Breakdowns are generally fast and drastic and could revisit the 50 Simple Moving Average.

UNI/USD 4-hour chart

UNI/USD 4-hour chart

Similarly, Uniswap is trading at the apex of a rising wedge pattern, as highlighted on the 4-hour chart. If the upside resistance at $10 is not overcome, a correction may come into the picture, perhaps toward the 50 SMA ($7).

UNI/USD 4-hour chart

UNI/USD 4-hour chart

On the other hand, the uptrend may continue above $10 if the wedge pattern trendlines converge before breakdown. Price action above $10 may call more buy orders, thus increasing the tailwind behind UNI.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu enters 96% bull run as whales continue accumulating SHIB

Ethereum whale bought $11.5 million worth of SHIB tokens on Tuesday. Shiba Inu token has reached 783,739 holders, large wallet investors accumulate SHIB tokens through the dip. SHIB was briefly the cryptocurrency with the largest turnover on exchanges Binance and Coinbase on Monday.

More Shiba Inu News

Three reasons why MATIC price will breakout to a new all-time high at $4.5

MATIC price breached a crucial resistance level that has prevented it from rallying four times over the past four months. The recent attempt seems to have an extra oomph behind it, hinting that this run-up could trigger a massive move.

More Polygon News

XLM price eyes 55% breakout if Stellar bulls can flip one crucial barrier

XLM price has been stuck trading under a crucial blockade for nearly five months. The situation is set to change soon, however, as Stellar coils up for an explosive breakout.

More Stellar Lumens News

Terra's Do Kwon files lawsuit against SEC while analysts turn bullish on LUNA

Do Kwon, Terraform Labs CEO, was served a subpoena by the SEC while appearing at Messari's Mainnet conference. According to Do Kwon and Terraform Labs' lawsuit against the SEC, the regulatory agency lacks jurisdiction over the plaintiffs. 

More Terra News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast