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SushiSwap Kicks Off Climb, Why This 40% Rally Is Just Getting Heated

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Up 57% in two weeks and 40% in 30 days, SushiSwap (SUSHI) moves at its own beat. The decentralized finance (DeFi) token trends to the upside on the back of a potential integration with Stargate, the LayerZero implementation.

Related Reading | Why SushiSwap’s 15% Gain Could Be The Beginning Of An Uptrend

At the time of writing, SUSHI trades at $4.80 with a 14% profit in 24 hours.

SushiSwap SUSHI
SUSHI with small gains on the 4-hour chart. Source: SUSHIUSDT Tradingview

LayerZero is a communication protocol that enables direct interaction between different blockchains. Stargate is a bridge solutions running on top of it.

By integrating with SushiSwap, the decentralized exchange (DEC) could unify the liquidity spread across its 16 different versions. In that way, users would access cheaper cross-chain transactions, more security, new products and investment strategies.

If the integration is approved, for example, liquidity providers on this DEX could expand their rewards. In step of receiving a portion of the transaction fees for 1 liquidity pool running on Ethereum, they could collect rewards from all the pools across the SushiSwap ecosystem.

The voting process that will accept or denied this potential integration has begun. Data provided by the DEX’s governance; this voting will end on April 4, 2022.

Currently, a majority of SUSHI holders have voted yes on the proposal with 6.4 million of the token at the time of the snapshot. This represents 99.99% of the votes so far which suggest overwhelming support for this proposal.

The proposal was presented by Tangle and OxMaki and promises to provide a better user experience for cross chain swaps, maximize trading volumes on Sushi pools, and more benefits to the DEX’s treasury. The proponents wrote:

We propose to have Sushi integrate Stargate to facilitate Omnichain native asset swaps and transfers between networks. This will help unlock the power of Sushi by allowing users to move freely between assets and networks.

The DEX and its native token seem to be reacting to this announcement. A pseudonym analyst caught the move to SUSHI’s current levels based on an On-balance volume (OBV), a metric used to measure momentum, downtrend break for the daily chart.

As seen below, the analyst believes SUSHI could reach as much as $6 if the token is able to sustain its current momentum. With the apparent imminent approval of the Stargate integration proposal, a continuation of the upward trends seems likely.

Related Reading | SushiSwap Narrowly Escaped A $350 Million DeFi Hack, Here’s How

Additional data provided by Material Indicators (MI) suggest investor with bids orders between $100,000 are dominating the current price action. While this investor class remains optimistic, smaller investors have been selling into this SUSHI rally.

SUSHI SushiSwap SUSHIUSDT
Large investors (purple) buy as retail (yellow) and smaller investors (green and red) sell this SUSHI rally. Source: Material Indicators.

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