According to John Todaro, head of business development at TradeBlock, a provider of institutional cryptocurrency trading tools and a CoinDesk subsidiary, SushiSwap's governance token, SUSHI, could be worth $100, a fivefold increase from current prices.
SushiSwap is an Ethereum-based decentralized cryptocurrency exchange. Its value has soared to around $19, representing a 30-fold increase from a low in November 2020. Todaro wrote in the Bankless newsletter on Thursday that the protocol has proven to be one of the biggest success stories of decentralized finance, or DeFi, with over $100 million in cumulative revenue since launch.
Holders of the SUSHI get a share of the SushiSwap platform's fees, similar to how stockholders might get a dividend. Todaro wrote, “Recently, SushiSwap initiated a process whereby a portion of platform trading fees are paid out to token holders.”
This ownership stake is essentially a dividend that can be used to value SUSHI in the same way that the price of a bond is a function of the yield.
Despite the high price, Todaro warned investors about the market's significant risks, including a drop in DeFi cryptocurrency trading.
Todaro wrote that this industry-wide risk could "severely impact SushiSwap's volumes and thus trading fees."
Source:
Bityard