Launched in August 2020 as a fork of the Uniswap decentralized exchange, SushiSwap briefly surpassed its competitor. Now in third place, behind Uniswap v3 and v2, DEX launches numerous integrations with large networks, in addition to the native Ethereum blockchain, to offer users a single point of entry and lower rates.
The SushiSwap protocol is one of the biggest proponents of a future multichain in decentralized finance, as DEX is already active in Ethereum, Binance Smart Chain, Polygon, Avalanche and Fantom. Covalent’s data provides information about SushiSwap in these five blockchains.
The data reveals that the most popular blockchain by the number of exchanges executed daily is Polygon, as protocol usage soared in May. Polygon continues to set new records, hosting 120,000 exchanges on SushiSwap recently.
Left far behind, Ethereum was ranked second in June 2021 by daily trading count. Fantom and Avalanche tend to follow the same trend as Ethereum, although the differences between the three have widened since the asset trading days in late May. Avalanche and Fantom even surpassed Ethereum in the number of transactions on May 19, when a market-wide settlement frenzy occurred.
A closer look at the daily trading volume tells a different story. Ethereum’s dominance of SushiSwap had been unshakable for a long time, with trading volume peaking at nearly R$15 billion on May 21st. However, Polygon surpassed Ethereum in volume of exchanges in June with a mark of BRL 2.1 billion, which highlighted the rapid take-off of second-tier scalability solutions.
Reducing transaction costs is the main factor behind adopting an approach multichain. SushiSwap achieved this by offering options outside of Ethereum. Data on gas usage in Ethereum and other blockchains couldn’t even be compared on a graph due to a dramatic difference in numbers.
Data from Covalent suggests that SushiSwap usage at Ethereum peaked at R$41 million in gas fees on May 19 at 27,000 exchanges, with an average fee of R$1,515.00. According to Glassnode, the average fees on Ethereum soared to over R$300 per transaction that day, but were still lower than the fees seen on SushiSwap powered by Ethereum.
The maximum rates on other networks were incredibly different from the rates on Ethereum, with Polygon consuming R$12,500 a day on 102,000 exchanges in June of this year.
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