ANALYSIS: The Yearn.finance Effect: Why SushiSwap (SUSHI) Rallied 75% in One Week

11 Dec 2020, 10:21 · Views 123

Photo: Coin Telegraph

(Coin Telegraph) - The price of SUSHI, the native token of SushiSwap decentralized exchange, has rallied 38% in the past 10 days.

At its monthly peak, the governance token had achieved a 75% price increase but the recent 10% pullback in Bitcoin price has weighted on SUSHI's price action.

One of the primary factors underpinning SUSHI's bullish price action was a strong relief rally in the decentralized finance sector following an extended correction that dominated the month of October.

The most evident catalyst for SUSHI in the past two weeks was its merger with the decentralised finance (DeFi) giant Yearn.finance.

On Dec 1, Andre Cronje, the creator of Yearn.finance, announced a merger with SushiSwap. Within the following week, SUSHI price surged by 75% from $1.541 to $2.496.

SUSHI one-hour price chart (Binance). Source: TradingView.com

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