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SushiSwap was launched in August 2020 as a branch of Uniswap’s decentralized exchange and briefly surpassed its competitors.Rank now Second only to Uniswap’s v3 and v2, DEX has launched numerous integrations with major networks outside of its native Ethereum blockchain, providing users with a single point of entry and lower fees.
The SushiSwap protocol is one of the biggest supporters of a decentralized financial multi-chain future, because DEX is already running on Ethereum, Binance Smart Chain, Polygon, Avalanche and Fantom. Covalent’s data provides insight into SushiSwap in these five chains.
The data shows that based on the number of swaps executed daily, the most popular chain is Polygon, because of the surge in protocol usage in May. Polygon recently hosted 120,000 swap transactions on SushiSwap, continuing to set new records.
As of June 2021, Ethereum lags far behind the number of daily swaps, ranking second. Fantom and Avalanche tend to follow the same trend as Ethereum, although the gap between the three has been widening since the active trading day in late May. Avalanche and Fantom even surpassed Ethereum in the number of transactions on May 19, when a liquidation frenzy of the entire market occurred.
A closer look at the daily swap volume will reveal a different story. Ethereum’s dominance in SushiSwap has been unshakable for a long time, with transaction volume reaching a peak of nearly $3 billion on May 21. However, Polygon surpassed Ethereum in June with USD 420 million in swap volume, highlighting the rapid acquisition-closure of the second-tier scalability solution.
The reduction in transaction costs is the main driving force behind the adoption of the multi-chain approach. SushiSwap does this by providing options outside of Ethereum. Due to the huge difference in quantity, it is not even possible to compare the gas usage data of Ethereum and other chains in one chart.
Data from Covalent shows that on May 19, the gas fee for using SushiSwap on Ethereum reached a peak of US$8.2 million in 27,000 swaps, with an average fee of US$303. According to Glassnode, the average cost of Ethereum soared to more than $60 per transaction on that day, but it was still lower than the cost of SushiSwap backed by Ethereum.
The highest fees of other chains are quite different from those of Ethereum. Polygon consumed $2,500 a day in 102,000 swap transactions in June this year.
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