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This won’t be the case for long with SUSHI’s price

SUSHI’s price fortunes haven’t been very consistent this month. In fact, while the first half of May saw the alt trade just below its ATH levels of $23.38, the last few days have seen the crypto fall sharply on the back of the market bloodbath. In the span of just 6 days, SUSHI lost over…

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This won’t be the case for long with SUSHI’s price

SUSHI’s price fortunes haven’t been very consistent this month. In fact, while the first half of May saw the alt trade just below its ATH levels of $23.38, the last few days have seen the crypto fall sharply on the back of the market bloodbath. In the span of just 6 days, SUSHI lost over 50% of its value.

At the time of writing, all wasn’t lost, however, with some signs of recovery seen on the price charts. The same was evidenced by the crypto hiking by over 30% in 24 hours.

Alas, price movements mean less than a flash in the pan if not backed by solid fundamentals. Fortunately, in the case of SUSHI, its recovery has been supported by not just the latter, but by institutional sentiment and ecosystem-centric updates as well.

A recent report from Santiment underlined the strength of SUSHI’s on-chain metrics.

The good, bad, and ugly of SUSHI’s on-chain metrics

Consider active addresses, for instance. Despite the aforementioned market-wide depreciation, the same remained more or less on an uptrend for SUSHI. This was the case even when the weekend came, with the same highlighting the impressive interest SUSHI has been accruing.

Even when metrics did fall over the course of the weekend or following the market fall, at press time, they had recovered somewhat, with the likes of Trading Volume holding steady to support the uptick in network activity following a sharp fall a few days ago.

These findings, however, don’t mean that all is well and rosy. For example, at the time of writing, exchange inflows were still too volatile following the huge spike seen in the same a few days ago. When the market crashed and SUSHI’s value fell, many holders capitulated, with the same evidenced by “lots of people depositing tokens to exchanges to exit positions.”

What’s more, the Network Profit-Loss and MVRV metrics seemed to stress on the scale of the aforementioned capitulation too.

Corresponding to the altcoin’s loss of value, the NPL registered a very sharp dip, a dip that underlined the fact that a significant chunk of SUSHI had been moved to exchanges at a loss. Further, according to Santiment,

“SUSHI’s 30-day MVRV ratio dipped to almost -44%, indicating that all addresses that have acquired SUSHI in the past 30 days were – on average – down 44% on their initial investment.”

Sounds like bad news, right? Well, perhaps, but there is a flip side of a silver lining here, with the latter metric also suggesting that SUSHI seemed to be terribly undervalued. Ergo, when the crypto’s price sustains a bounceback, there will be quite an upside to run into, at least until the MVRV levels off.

Finally, there’s also the question of narratives. Yes, SUSHI’s price fell and yes, a lot of holders capitulated and sold off their positions. Alas, one way to look at it is that the altcoin has now shrugged off the weak hands in the market. When the upside comes, it will be driven by the stronger hands in its market.

Price performance and on-chain metrics apart, there are other reasons why it’s not out of the question to be optimistic about SUSHI’s long-term fortunes. In fact, as was highlighted by a recent article, organic developments such as the launch of Kashi lending and Margin Trading on SushiSwap’s BentoBox have the potential to fuel more upside for the crypto.

SUSHI – A tripling to come?

Finally, it would seem that institutions and crypto-asset fund managers are taking the alt seriously as well, with Arca CIO Jeff Dorman being one of them. In a recent interview with Business Insider, Dorman sought to clarify that while SUSHI has underperformed this year, that won’t be the case for long going forward.

In fact, Dorman is confident that SUSHI’s token will triple in the long term, especially since the token accrues economic value in the form of dividends to token holders.

SUSHI, therefore, might not really be a bad bet in the long term.


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Analysis

SEC, Ripple, XRP Lawsuit update: This is ‘something obviously the SEC does NOT want to see happen’

The ongoing case between the United States SEC and Ripple Labs was already seeing a lot of back and forth before John Deaton and XRP Holders filed a motion to intervene. While the defendants, for their part, have come out in support of the movants’ motion in “limited capacity,” the regulatory agency has vigorously argued…

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SEC, Ripple, XRP Lawsuit update: This is ‘something obviously the SEC does NOT want to see happen’

The ongoing case between the United States SEC and Ripple Labs was already seeing a lot of back and forth before John Deaton and XRP Holders filed a motion to intervene. While the defendants, for their part, have come out in support of the movants’ motion in “limited capacity,” the regulatory agency has vigorously argued against both the motion and Ripple’s “limited participation” idea.

The SEC’s latest response to both has fueled quite a reaction within the crypto-community, with most on the fence with respect to what they expect might happen next. Jeremy Hogan, however, isn’t one of them, with the popular attorney recently going on Twitter to air his views on the agency’s response to XRP holders’ motion to intervene.

According to Hogan, the aforementioned response “jumped the proverbial shark,” with the attorney implying that the SEC’s latest argument is unlikely to fly and be accepted by the court in the present case. Here, the argument that Hogan was referring to was the allegation that Ripple and Deaton and XRP holders are in cahoots with each other and are colluding to beat the SEC.

Such an allegation is an extension of similar statements made by the SEC in the past. In fact, in its initial reply to Deaton’s motion to intervene, the agency had accused the movants of “reciting” the defendants’ litigation position. Even in its present response, the SEC has alleged that the movants won’t be impartial and objective participants, with the agency adding,

“….. Movants would act as friends of the defendants, not true friends of the court.”

It’s worth adding, however, that for his part, Hogan seemed to agree with the SEC’s contention that XRP holders shouldn’t be “injected as full litigants.” Instead, he said,

“I think the Judge should (and will) grant limited “amici” participation – something obviously the SEC does NOT want to see happen.”

Hogan, ergo, seemed to side with Ripple’s conditions for XRP Holders’ participation in the present case.

The popular attorney also took issue with the fact that the SEC has failed to recognize the value of the new insights and facts the movants might be able to bring to the said litigation.

What does the SEC’s latest response, the sheer tone and animosity of it, mean for the prospect of settlement, however? Well, according to the attorney, “it doesn’t change anything.”

Finally, Hogan observed,

“Lawyers are not supposed to make baseless accusations against opposing counsel yet, here we are…”

This is a telling statement to make, especially since something similar was implied by the intervenors’ latest memorandum of law against the SEC’s opposition. In his submission to the court, Deaton had claimed that he was being “unfairly targeted as an unhinged conspiracy theorist crusader.”


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Jibin George

Jibin is a news editor at AMBCrypto. With over three years of experience as a political writer, he primarily focuses on the political impact of crypto developments. A graduate in Law and International Relations, his writing is by and large focused on cryptocurrencies from the political and financial perspective. A Liverpool FC fan. YNWA

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Analysis

Matic & Loopring: Why these projects matter to Ethereum’s performance

With ETH’s price back in the $2900 range, there has been a lot of debate on the level of security Layer 2s provide, their long-term ROI, and the sustainability of their price rally. After crossing the $4000 level on May 12, the price dropped, several times and the scaling solutions’ have rallied. Consider the analogy,…

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Matic & Loopring: Why these projects matter to Ethereum’s performance

With ETH’s price back in the $2900 range, there has been a lot of debate on the level of security Layer 2s provide, their long-term ROI, and the sustainability of their price rally. After crossing the $4000 level on May 12, the price dropped, several times and the scaling solutions’ have rallied.

Consider the analogy, someone with $100 can save or store it in several ways as they would like. There is the option of storing it in a wallet, keeping it in a bank, or in the security of a vault. However, with Ethereum, a trader with $100 worth of ETH would have to use all ways at once – store in a wallet, bank and vault at once. Does that make it inefficient and unnecessary?

What L2 solutions do is that they offer the option of one way instead of many, making it efficient. These L2 solutions are projects like MATIC, Loopring, OMG. All three projects have offered high short-term ROI since the launch of ETH L2. In the case of MATIC, the number of transactions and the transaction volume have increased significantly since the launch.

The altcoin now ranks 14 in the top 25. The transaction volume for nearly all three projects has increased, on account of significantly high fees of settling transactions on the ETH network. According to data scientist @ASvanevik, MATIC has the largest inflow of stablecoins of any Ethereum address in the last 7 days. This signals increasing demand for MATIC, while the price rally extends beyond the 105% from last week.

In the case of Loopring based on the following data from Lunarcrush.com, the Galaxy Score Trend, a combined measure of health, quality and performance, is at 63, lower than the peak it hit the second week of May 2021. The social volume has dropped considerably and the demand across exchanges has dropped. It is anticipated that once the social volume recovers and trader sentiment is neutral, Loopring would offer high short-term ROI like other L2 scaling solutions.

L2 solutions are likely to remain relevant for a long time; as ETH transaction fees remain high, traders and ETH Maxis have been bullish about MATIC and Loopring. MATIC already offers side chains and plasma and has a roadmap to introduce optimistic and Zk rollups in the future which is likely to increase ease of use. In the war of L2 scaling solutions, ease of use is the key factor, after demand and ROI. Long-term ROI is anticipated to be high for ETH and scaling solutions alongside it.


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Ekta Mourya

Ekta is a full-time journalist at AMBCrypto and her specialization lies in spot markets. Currently pursuing her MBA, she is passionate about trading, fintech, and everything decentralized.

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Analysis

What’s next for XRP’s price following these court proceedings

The ongoing legal battle between the SEC and Ripple has been somewhat of a rollercoaster for XRP traders and HODLers. There is uncertainty in the price of the altcoin, as a result of this legal debacle. The SEC has argued from the beginning of this enforcement action that XRP is a security. The impact of…

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What’s next for XRP’s price following these court proceedings

The ongoing legal battle between the SEC and Ripple has been somewhat of a rollercoaster for XRP traders and HODLers. There is uncertainty in the price of the altcoin, as a result of this legal debacle. The SEC has argued from the beginning of this enforcement action that XRP is a security.

The impact of the recent updates is that XRP’s price is at $1.44, down nearly 5% in the last 24 hours. There has been an increase of nearly 50% in the trade volume in the last 24 hours. The altcoin’s price is nearly 62% below the ATH of the $3.84 level based on data coinmarketcap.com.

The social volume hit a peak several times, following updates from the SEC vs Ripple hearing. It has dropped to 16258 based on the above chart, following SEC’s argument that XRP holders are actually XRP investors. This is akin to an attack on XRP HODLers’ portfolio given the impact on the ROI in the short-term. (Ironically, the SEC’s motto is to “protect investors”)

HODLers vs Investors: What is the fate of XRP traders

XRP Short term ROI || Source: Messari

Based on the above chart, XRP traders have earned less than 15% ROI in the past 30 days and that makes it less profitable than most altcoins in top 10. Similarly, for HODLers who accumulated when the price was at $1.9 level, they are currently unprofitable. The volatility has nearly dropped, with a few spikes following updates from the hearing. At the same time, XRP’s correlation with BTC and ETH is above 80%. This has helped the altcoin’s price sustain at the $1.6 level against the selling pressure on spot exchanges.

In its latest filing, the response from SEC makes the hostile stance towards XRP traders clear. The updates in court proceedings have by no means safeguarded the interests of XRP traders. The short-term ROI is expected to drop further following updates.

The enforcement action brought by the SEC may have never been intended to protect or negatively impact XRP’s price, however, at a time when nearly every mid to small-capitalization altcoin is rallying this summer, XRP’s rangebound price action is largely a result of the SEC proceedings against Ripple.

XRP traders have responded to this action, by consistent demand across spot exchanges and the market capitalization is currently above $51 Billion, the altcoin ranks 7 and there are currently no signs of dropping below the top 10.


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Ekta Mourya

Ekta is a full-time journalist at AMBCrypto and her specialization lies in spot markets. Currently pursuing her MBA, she is passionate about trading, fintech, and everything decentralized.

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