A widely-followed crypto analyst says the entry of a $47 billion asset manager could provide a much-needed boost to the decentralized exchange (DEX) protocol SushiSwap (SUSHI).
Will Clemente tells his 660,800 Twitter followers that one of the consistent use cases for crypto is to allow market participants to trade highly illiquid altcoins on decentralized exchanges.
“In fact, the ratio of DEX volume to spot volume on centralized exchanges is higher than it was this time last year mid bull run. There is clearly a consistent underlying demand for playing in the crypto casino. »
Even amid increased demand from cryptocurrency traders, Clemente points out that trading volume on SushiSwap is down massively this year.
Due to leadership issues and other issues, SushiSwap volumes (filtered for wash-type swaps) are down about 89% year-to-date according to Messari. This put them significantly behind competitors such as Uniswap. »
However, Clemente says that that things are starting to look up for the decentralized exchange protocol after SushiSwap hired Jared Gray as head chef. Grey, the former CEO of defunct Bitfineon cryptocurrency exchange. said to that he plans to restore Sushi to its “rightful status among its peers”.
Clemente also points out that New York-based asset manager GoldenTree took a relatively small position in SUSHI.
” Next, [$47 billion] asset manager GoldenTree took a $7.27 million position in Sushi. Expressing its commitment by publicly sharing its portfolio and its intentions to make changes to straighten out the protocol with a post in the Sushi forum. »
According to Clemente, GoldenTree’s entry and public exposure of its position could change SUSHI’s fate.
“Apart from the assumption that the brilliant Avi Felman and GoldenTree will do everything in their power not to let their first major public crypto position go bankrupt, I think this presents an interesting asymmetric opportunity for SUSHI.
If GoldenTree orchestrates one positive change, the market will extrapolate that they will make several more. Make two changes and the market will extrapolate even more. This could create a knee-jerk effect for SUSHI’s turnaround narrative.
As with Alameda’s bet on DOGE, I think the asymmetry is favorable here in that Avi, GoldenTree and the resources behind them are likely going to implement at least some positive structural changes, which is all the market needs to project additional positive expectations. »
At the time of writing, SUSHI is trading hands for $1.27, down more than 8% on the day.
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$47,000,000 asset manager could be behind decentralized exchange protocol turnaround: Analyst – Essonne Info
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