SUSHI Crypto Prices Pop Following Takeover Proposal. What Should You Know?

When it comes to decentralized exchanges (dex), SushiSwap (CCC:SUSHI-USD) is one of the first platforms users will typically opt for. The exchange has a robust catalogue of trading pairs, with the fifth-highest total trading volume in the world. SushiSwap’s flagship token, the SUSHI crypto, is also one of the hottest topics of discussion this morning as it pops 12%. Investors are paying close attention to the chatter around the exchange’s dealings with an Avalanche (CCC:AVAX-USD) developer.

Two rolls of sushi on a platter.
Source: Shutterstock

SushiSwap has been having a rough go for the last few weeks. There is apparently a lot of internal turmoil for the exchange, with multiple developers leaving the project recently. Notably, SushiSwap’s Chief Technology Officer Joseph Delong stepped down late last week; Delong’s resignation comes with the warning that the platform is “imperiled.”

With the SUSHI crypto in steady decline since November, members of the crypto community have bulked up efforts to get the dex back on its feet administratively. The Avalanche network is taking the lead on this initiative with a top developer’s proposal to absorb SushiSwap under their project’s umbrella.

SUSHI Crypto Rallies Thanks to Avalanche Developer’s Support

Avalanche is an open-source dapp development platform that seeks to unseat Ethereum (CCC:ETH-USD) as the largest blockchain web. The AVAX coin has seen a nearly 1,000% gain since the beginning of August, making it one of the fastest-growing plays in this particular category of crypto assets; the influx of capital has also helped make the AVAX coin the twelfth-largest crypto in the world.

One of the top developers on the Avalanche network is Daniele Sestagalli. Indeed, Sestagalli is the developer behind two of Avalanche’s largest dapps, Wonderland and Abracadabra; these projects are so large, in fact, that the combined market capitalization of their tokens is nearly $6 billion.

Sestagalli is using his leverage as one of the most prominent dapp developers in the world to help bring some order to the SushiSwap platform. He is proposing that his Wonderland and Abracadabra projects absorb SushiSwap into their ecosystem. This would in turn install Sestagalli in the SUSHI crypto development team. Additionally, it would bring about other changes to SushiSwap’s administrative structure.

Given that SushiSwap is decentralized, the community has the power to pass this proposal. It will likely be a contentious moment in the dex’s history as well; as it appears now, the community’s reaction to Sestagalli’s proposal is a mixed bag. Some users would like to see order restored to the network by whatever means necessary. Therefore, they see the merger as valuable. Others still question Sestagalli’s motive and overarching vision for the platform.

Whatever the case may be, the SUSHI crypto is seeing plenty of green today. Sestagalli’s proposal and the community’s response to it prove that there’s a huge vested interest in the SUSHI crypto’s future. As such, SUSHI is rising over 12% so far today. Trading volume is up massively, with transactions of SUSHI rising 250% in the last 24 hours.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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