Started in August 2020 as a fork of the decentralized exchange Uniswap, SushiSwap briefly outperformed its competitors. The DEX now ranks third behind Uniswap v3 and v2, performing numerous integrations with major networks beyond its native Ethereum blockchain to provide users with a single point of entry and lower fees.
The SushiSwap protocol is one of the biggest proponents of a multi-chain future in decentralized finance as the DEX is already live on Ethereum, Binance Smart Chain, Polygon, Avalanche and Fantom. Covalent data provides insight into SushiSwap in these five chains.
The data shows that the most popular chain by the number of swaps executed each day is Polygon as log usage skyrocketed in May. Polygon continues to set new records as it recently hosted 120,000 swaps on SushiSwap.
Far behind, Ethereum ranked second in daily swap count in June 2021. Fantom and Avalanche tend to follow the same trend as Ethereum, although the gaps between the three have widened since the active trading days in late May. Avalanche and Fantom even outperformed Ethereum in the number of transactions on May 19 when a market-wide liquidation craze erupted.
A closer look at the daily swap volume reveals a different story. Ethereum’s dominance at SushiSwap had long been unshakable, with trading volumes peaking on May 21 at nearly 3 billion-off of Layer 2 scalability solutions.
Lowering transaction costs is the main reason for adopting a multi-chain approach. SushiSwap achieved this by offering options outside of Ethereum. Data on gas consumption at Ethereum and other chains could not even be compared in a chart due to a dramatic difference in numbers.
Data from Covalent suggests that the use of SushiSwap on Ethereum on the 19th, according to Glassnode, the average fees for Ethereum on that day rose to more than $ 60 per transaction, but were still lower than the fees of SushiSwap powered by Ethereum.
The maximum fees for other chains were astonishingly different from the fees for Ethereum, with Polygon consuming $ 2,500 in a day on 102,000 swaps this June.
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