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Cryptocurrency


UNISWAP VS SUSHISWAP: WHICH CRYPTO SHOULD YOU BUY IN 2022


IN THE FOLLOWING UNISWAP VS SUSHISWAP COMPARISON, WE’LL BE LIFTING THE LID ON
THESE TWO PROJECTS AND LOOKING AT THEIR KEY DIFFERENCES, AS WELL AS THEIR
SIMILARITIES.

Buy Cryptos Now
Last Updated March 24th 2022
16 Min Read
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Uniswap and SushiSwap are two of the biggest decentralised exchanges on the
market, with both platforms having billions of dollars of collateral locked into
their protocols at any given time. 

Whilst these two Ethereum-based projects are ostensibly in direct competition,
potential investors may be surprised to learn that they are remarkably similar
in many ways. So is one a better investment than the other in 2022?

After a rollercoaster year in 2021, the cryptocurrency market is a very
different place going into 2022 and the section of the industry known as DeFi is
continuing to evolve. Gone are the days when cryptocurrency was simply bought
and held, with hopes that a token would appreciate over time. Projects like
Uniswap and SushiSwap allow crypto holders to put their tokens to work with
liquidity mining. 

Of course, both SushiSwap and Uniswap also provide a platform for users to
exchange their ERC-20 tokens, without needing to go through a traditional broker
or exchange. In other words, these DEx’s operate completely autonomously, with
no need for a middle man or central order book. 

In the following Uniswap vs SushiSwap comparison, we’ll be lifting the lid on
these two projects and looking at their key differences, as well as their
similarities. Hopefully, after reading you’ll have a better idea of how each
platform operates, as well as where their respective tokens may fit into your
investment portfolio.


WHAT IS A DECENTRALISED EXCHANGE?

Decentralized exchanges, as the name suggests, are cryptocurrency exchange
marketplaces that remove the need for an intermediary custodian - in other words
with no middle man. By leveraging smart contracts, DeXs can allow for
peer-to-peer transactions, linking buyers and sellers directly. Conversely,
centralized exchanges are managed by a centralized organization such as a bank
or broker that is seeking to turn a profit.

Because DeXs don’t have a central order book, they rely on things called
Automated Market Makers and liquidity pools to ensure that there are always
tokens available to meet the needs of users looking to buy, sell or exchange.
AMMs are algorithms that set the price of a token based on supply and demand.
Users are encouraged to stake their own tokens in liquidity pools, for which
they are usually rewarded a proportion of the trading fees. 

In exchange for staking their tokens in liquidity pools, users usually receive
an alternative token of equivalent value that acts as a kind of IOU. These
tokens can also be freely traded on the networks. 

Many of the top DEXs are built on top of existing blockchains. The most popular
is, of course, Ethereum, followed by the likes of Binance Smart Chain and
Cardano. 


UNISWAP VS SUSHISWAP - THE FUNDAMENTALS



Uniswap and SushiSwap are decentralised exchanges that are both built on the
Ethereum blockchain. Effectively, they fulfill a similar role and could be said
to be in competition with each other. However, SushiSwap actually started life
as a fork of Uniswap - so the two projects are directly related.  

This can make it a little trickier to identify what the fundamental differences
between the two platforms are. In the following overview of each one, we hope to
identify exactly what sets Uniswap and SushiSwap apart. 


UNISWAP

Background

The concept for Uniswap was raised in 2016, after Vitalik Buterin outlined the
idea of an on-chain exchange system. When Hayden Adams began working on
developing this idea in 2017, he received $100k from the Ethereum Foundation.
Uniswap was then born around a year later, in 2018. 

As we’ve mentioned, Uniswap is an Ethereum-based project. It is what’s known as
an Automated Market Maker - and this is what sets it apart from traditional
exchanges. Uniswap doesn’t rely on an order book to make transactions, it
instead uses an algorithm to determine price and uses liquidity pools to ensure
tokens are available to users on the exchange. 

Inevitably, the idea of an automated exchange that removed the need for a
middle-man proved popular and Uniswap quickly started building liquidity and
transaction volume. Uniswap incentivises users to provide liquidity by rewarding
them with a share of the fees, based on trading volume of the particular pool
they provide liquidity to. 

Key Information

Uniswap is one of the most popular DeXs out there and, at the time of writing,
it has some $8.29bn locked into its protocol, according to DeFi Pulse. 

The platform employs a Constant Product Market Maker, which effectively means
the price of a token increases or decreases in relation to supply and demand.
Whilst this does mean there is greater slippage on larger orders, ultimately it
is what makes Uniswap tick. 

The trading pools themselves are what allows Uniswap to ensure orders can be
met. The pools are made up of ERC-20 tokens and a relative amount of Ether
acting as collateral. Users providing their tokens to the liquidity pools
receive newly minted liquidity tokens which acts as an IOE for their proportion
of the pool as well as a 0.3% fee from each trade. 

The UNI Token

The UNI token came to life after the fork that spawned SushiSwap. The latter
instigated a rewards scheme with its own native token, SUSHI, so Uniswap
followed suit to encourage its user base not to jump ship to the newer
platform. 

Today, the UNI token is primarily a governance token. This means that UNI
holders effectively run the platform - voting on potential protocol changes and
steering the direct of the project and its future upgrades. 

The UNI token can also be bought and sold on the open market, as with most major
cryptocurrencies, which offers investors the chance to gain exposure without
having to enter into the Uniswap protocol itself. 

Check Out: Will Uniswap Make Me Rich in 10 Years? 




Crypto asset investing is highly volatile and unregulated in some EU countries.
No consumer protection. Tax on profits may apply.


SUSHISWAP

Background

SushiSwap is another Etheruem-based exchange that began as a fork of Uniswap.
Initially, SushiSwap improved on the original Uniswap blueprint by offering its
own governance token and the possibility of liquidity mining. In fact, users
could use the collateral tokens they received from staking on Uniswap to earn
SUSHI governance tokens - so SushiSwap very much sought to poach users from its
predecessor. 

The project launched in August 2020 and, despite some early teething troubles
relating to dubious action from creator Chef Nomi, the project quickly
established itself as a competitor to Uniswap.  This was largely down to the
fact that Chef Nomi effectively relinquished control and the rules governing the
project were tightened up. 

Fundamentally, it is very similar to Uniswap, as both are AMMs that rely on
liquidity pools to run their services. Notably, SushiSwap also offers the
SushiBar, which allows users to effectively re-stake their Sushi Liquidity Pool
tokens to earn further rewards. 

Key Information

When it comes to locked-in funds, SushiSwap trails Uniswap slightly, having an
estimated $1.9 billion on its books at the time of writing. However, it’s worth
bearing in mind that SushiSwap is a much newer platform, so this is largely to
be expected. 

Just as with Uniswap, SushiSwap is an AMM that uses smart contracts to determine
the value of a particular token, then liquidity pools supply the exchange with
the tokens needed to support transactions. Again, these pools consist of ERC-20
tokens. 

One of the major advantages that SushiSwap has over its predecessor is that a
high proportion of its fees are redistributed to users. Liquidity providers
receive 0.25% of pool fees, with an additional 0.05% paid to SUSHI holders. In
addition, SushiSwap still offers yield farming for SUSHI holders, whereas
Uniswap closed its UNI token farming period. 

The SUSHI token

Once again, the SUSHI and UNI tokens serve very similar purposes. SUSHI is used
as a reward for liquidity providers. Holders of SUSHI are also entitled to
higher rewards for staking their tokens. The token is also used in the
governance of the SushiSwap platform.

As we’ve noted, SUSHI holders can also use them at the SushiBar. This involves
staking them in return for the xSUSHI token - which then unlocks even greater
rewards. The inner mechanism is too complex to be explained here, but this
feature is an advantage that SUSHI has over Uniswap. 

Of course, some people also speculate on the prices of SUSHI and the token can
be traded on major exchanges such as Binance, FTX and OKEx exchanges.

Don't Miss: Could SushiSwap Be A Millionaire-Maker Coin?



Crypto asset investing is highly volatile and unregulated in some EU countries.
No consumer protection. Tax on profits may apply.


SUSHISWAP VS UNISWAP: WHICH IS THE BETTER INVESTMENT?

It seems that both SushiSwap and Uniswap have their strengths and weaknesses and
both are undoubtedly popular platforms. However, they also represent fairly
similar investment opportunities so many investors will be looking to choose one
or the other for their portfolio. But which is the better pick?

To answer this, we need to take a look at a few details with regards to each
project’s price movement - looking back as well as forwards. 


UNISWAP VS SUSHISWAP: PRICE HISTORY

Before looking at price forecasts, it’s a good idea to look back at how Uniswap
and SushiSwap have performed leading up to this point. Price history can give us
an idea of each project’s price bands, as well as how they move in line with the
wider cryptocurrency market - as well as in relation to each other. 

UNISWAP

As we’ve noted, the Uniswap exchange was launched in 2018 but its native token
was launched two years later, towards the end of 2020. This was a fortuitous
time to enter the market, as the cryptocurrency market was set to take off in
the coming months. In fact, UNI doubled in value almost as soon as it launched,
hitting $7.10 by mid-September. The token then slumped to $3.40 as the year drew
to a close. 

Of course, 2021 proved to be a record-breaking year for the cryptocurrency
market and UNI was caught up in several major price swings. At the start of
January, UNI was trading at $5.17. A few weeks later, it soared by around 275%
to $19.39. February was another successful month, with UNI rising to $29. UNI
dropped slightly at the start of the month, before soaring to $32.62 just a week
later. 

There was then a week or two of volatility before UNI climbed to $43.67 - an
increase of 740% on its price at the start of the year. It then crept up to its
all-time high of $44.92 in the first few days of May. However, a major downturn
followed and UNI had slumped to $16.91 by the end of the month. The downturn
largely continued across June and July, before the token started to recover in
August, reaching $31.05 by the time September arrived. 

Uniswap then experienced declining fortunes leading up to the end of the year,
dropping to $14.17 in December. At the time of writing, the token was trading at
$11.83.

SUSHISWAP

Despite Uniswap being the older platform, SushiSwap actually launched its token
first. The token was first listed in August 2020 and soon saw some pretty
drastic price movement. Having spent its first couple of days at around $2.59,
SUSHI suddenly tanked to $1.16. However, just a day or so later the token surged
to $8.84.

After its initial spike, SUSHI went into something of a decline early on and had
dropped below the dollar by November 2020. However, things turned around before
the year was out and the token made its way back up to $2.61 before the major
price surges of 2021 kicked off.

The first upswing occurred throughout January, as SUSHI finished the month at
$10.27, representing growth of almost 300% in a single month. However, things
were about to get a shot in the arm and after the third week of February,
SushiSwap had skyrocketed to $18.45. Another upswing took hold in March, sending
SUSHI to its all-time high of $23.38.

Things came crashing down in April, however, and SUSHI dropped to $10.65 before
the month was out. May then saw another price surge, with the token regaining
the $20-mark and topping out at $21.44. The cryptocurrency market as a whole
then took a downturn over the summer and SUSHI spent June and July below $10
before recovering to $14.93 in September.

The end of 2021 saw SushiSwap on a downward trend and at the time of writing the
token was trading at $4.78.


UNISWAP VS SUSHISWAP: FUTURE PREDICTIONS

Having taken a retrospective of each project's historical price data, it's now
time to hear a few market analysts on what they are predicting for the future. 
Readers should be advised that the following Uniswap and SushiSwap price
forecasts are suggestive only - there are no guarantees when it comes to
investing in the cryptocurrency market. 

UNISWAP (UNI)

Uniswap is a popular exchange and already has a large user base, so it is
perhaps of little surprise that many analysts expect its native token, UNI, to
increase in value over the coming years. However, the analysts we looked at do
differ in how they see the next twelve months or so. 

Over at DigitalCoinPrice, for example, Uniswap (UNI) is expected to experience a
fairly volatile year in 2022, climbing as high as $17.27 but struggling to hold
value month to month. The pattern is then somewhat repeated in 2023, as the
token is expected to make significant gains going into the summer, reaching as
high as $20.87 in June, before declining slightly and finishing the year back at
around. Then the picture in 2024 is much the same, with UNI up by as much as
119% in summer, before declining in the winter months. 

On the other hand, WalletInvestor actually forecasts that Uniswap will climb
steadily across 2022 and 2023. According to its technical analysis, UNI will
reach an average trading price of around $29 by December, before continuing on
an upward trajectory into 2023, potentially climbing as high as $35.43 by the
end of the first half of the year. 

Elsewhere, TradingBeasts sees things slightly differently. It has Uniswap (UNI)
fluctuating across 2022 and 2023, trading between $11 and $14. However, things
will get steadier around 2024 and the token will make significant gains,
increasing in value by almost 70% by the end of the year. As summer 2025
arrives, UNI is predicted to be trading at a potential high of over $23.19 per
token. 

Read Also: Uniswap Price Prediction

SUSHISWAP (SUSHI)

Perhaps unsurprisingly, many SushiSwap price predictions for the next year or so
look remarkably similar to those of Uniswap. However, whilst both tokens are
expected to see volatility across 2022, it appears as though SushiSwap is
expected to make the more significant gains. 

If we look at DigitalCoinPrice again, we can see that it predicts SUSHI to climb
by as much as 50% across the summer months of 2022, before going into decline
and finishing the year at around $6.98. As we head into 2023, SushiSwap is
expected to become bullish once again, climbing as high as $8.21 by the end of
March - an increase of over 70% on today’s price. 

Meanwhile, WalletInvestor has SushiSwap making fairly consistent gains across
the next year. Having reached an average trading price of $12 in the first half
of the year, SUSHI will continue to build on its success and by December could
hit a potential high in excess of $13.9 per token. Prices will then continue to
rise - albeit at a slightly reduced rate - in the early months of 2023, reaching
a potential high of $14.81 by April. 

Finally, we have a SushiSwap price prediction from the Economy Forecast Agency
which suggests that the token could struggle to hold any significant gains in
2022 and will potentially decline by almost 20% by December. However, SUSHI’s
fortunes are then expected to turn around in 2023, with the token climbing by as
much as 69% by year's end. 

Check Out: SushiSwap Price Predictions


UNISWAP VS SUSHISWAP: CONCLUSION

When it comes to investment, it appears that there’s not a great deal to
separate Uniswap vs SushiSwap. Both projects are Ethereum-based exchanges and
both operate in a fairly similar way. As we’ve noted above, SushiSwap started
life as an offshoot of Uniswap, so it stands to reason that they have similar
infrastructures. 

In terms of total value locked in, then Uniswap is the bigger platform of the
two, which might strike a chord with investors. However, it would also appear
that most of the analysts we looked at are predicting slightly bigger growth for
SushiSwap in the coming years, so this might also be a factor in making any
investment decisions. 

The bottom line is that these are both leading exchanges and if you are looking
to add more DeFi tokens to your portfolio, then either SushiSwap or Uniswap
would make a worthy addition. The only thing to be aware of is that both are
likely to undergo significant volatility in the coming months, so it's important
to have a strategy in place and not be swayed by sudden, short-term price
movements. 

Of course, if you choose not to buy UNI or SUSHI, you can still use either
platform to stake your existing tokens and earn rewards. For many investors,
these projects are a good opportunity to put their tokens to work, rather than
have them sitting around in a wallet. 


HOW TO INVEST IN SUSHI OR UNI COINS IN 2022

If you want to buy SUSHI or UNI this year, then you’ll need to find an exchange
that lists these tokens. Fortunately, you’ll find both on eToro - one of the
leading names in retail investment. eToro has an award-winning trading platform
that’s suitable for novices as well as more experienced investors.

Opening an account takes just a few minutes and, once you’ve completed the
necessary verification, you’ll be able to buy and sell many of the
cryptocurrency markets' most popular tokens. 


ETORO – THE BEST PLATFORM TO BUY CRYPTOCURRENCIES 



eToro have proven themselves trustworthy within the Crypto industry over many
years – we recommend you try them out.



Crypto asset investing is highly volatile and unregulated in some EU countries.
No consumer protection. Tax on profits may apply.


FAQ


IS SUSHISWAP BETTER THAN UNISWAP?

SushiSwap formed as a result of a Uniswap fork and was initially touted as an
improvement on the original exchange protocol. It certainly has its advantages -
particularly the SushiBar, which offers users more rewards. However, it should
be noted that Uniswap is still the bigger of the two exchanges, with
significantly more assets locked into its protocol.


HOW IS SUSHISWAP DIFFERENT FROM UNISWAP?

When it first launched, SushiSwap differed from Uniswap in that it had its own
token, SUSHI. However, to try and stop users jumping ship, Uniswap responded
with the launch of UNI. The two platforms are inevitably very similar, but
SushiSwap is the better of the two when it comes to yield farming and returns
for those providing liquidity. 


WHERE CAN I BUY SUSHI?

SushiSwap is one of the world’s most popular DEXs, so you’ll find its native
token listed on most top exchanges. We usually recommend eToro, as its one of
the most trusted brands out there and has a user friendly trading platform.


WHICH CRYPTO SHOULD I BUY IN 2022?

There are plenty of tokens poised for growth in 2022, so investors have a great
deal of choice when it comes to building their portfolio. The key thing here is
research. A good place to start is our list of the ten DeFi cryptocurrencies
that could explode in 2022.


WHAT IS A DECENTRALISED EXCHANGE?

A decentralised exchange is a platform that allows cryptocurrency holders to
buy, sell and exchange tokens without having to go through a mediary custodian.
DEXs use algorithms to set their prices and make use of liquidity pools to
ensure that tokens are available for transactions.

Read More:

Bitcoin vs Uniswap

How To Make (Or Lose) Money With SushiSwap (SUSHI)?

Will SushiSwap (SUSHI) Make Me Rich?

Pros and Cons of Investing in Uniswap, Will It Be a Millionaire Maker?

11 Reasons Why You Should Invest In Uniswap Today

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