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SushiSwap failed to become a Uniswap “killer”

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SushiSwap failed to become a Uniswap 'killer'

SushiSwap failed to become a Uniswap “killer”
CONTENT

  • Clones of decentralized protocols are losing popularity

  • Fork is now a new form of protest in the digital space

  • Uniswap remains the leader in terms of trading volumes

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The success of the decentralized SushiSwap protocol turned out to be not as long-term as expected

SushiSwap failed to become a Uniswap 'killer'

The fork of Uniswap’s decentralized cryptocurrency exchange protocol, SushiSwap, failed to maintain liquidity over the long term. Analysts of the Messari service came to this conclusion, having studied the trading activity on the sites.

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Initially, after the announcement of SushiSwap, liquidity surged into individual project pools. At first, it seemed that a fork in the cryptocurrency world was essentially a change in the blockchain protocol. Since cryptocurrencies operate on decentralized networks, all parties … More was able to withdraw most of the funds from Uniswap, analysts say. However, fortunately for Uniswap, the cryptocurrency counterpart was unable to sustain activity in the medium term..

Source: messari.io

“It turns out there are a number of other factors to consider, such as team belief, existing community and integration,” Messari said..

SushiSwap failed to become a Uniswap 'killer'

Despite the sharp increase in volume in SushiSwap almost immediately after launch, liquidity has decreased over time and is now only 13% of Uniswap.

Fork as a form of protest

The drop in liquidity only worsened after Uniswap announced the airdrop of the native UNI token. As the popularity of the decentralized finance market (DeFi) has grown, Decentralized Finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More protocol for exchanging cryptocurrencies. Nevertheless, most of the clones have lost their relevance, while the original projects are popular to this day, the researchers write..

Source: messari.io

Today, the threat of a fork is a kind of protest against developers when users of a project want to express disagreement with the trajectory of its development. Messari believes that any selfish decision made by the developers of the DeFi project can now easily be blocked by a new fork, which will bring more benefits to committed users..

The triumph of decentralization

Decentralized exchanges like Uniswap became the undisputed leaders in Q3 2020, benefiting significantly from speculation around DeFi. Most often, assets were pledged at interest either in pools of automated market makers or in crypto-credit projects.

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In addition, most DeFi tokens initially appeared exclusively on decentralized exchanges, and even when they eventually added them to the listings of centralized exchanges, most of the liquidity remained on decentralized exchanges..

SushiSwap failed to become a Uniswap 'killer'

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