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SushiSwap's SUSHI Seen at $100 Value, Up Fivefold From Current Level
SUSHI's near 3,000% rise isn't over, and could be valued at $100 using a traditional dividend discount model.
Updated Sep 14, 2021, 12:26 p.m. Published Mar 12, 2021, 9:10 p.m. 2 min read
SushiSwap's governance token, SUSHI, could be worth $100, up fivefold from current price levels, according to John Todaro, head of business development at TradeBlock, a provider of institutional cryptocurrency trading tools and CoinDesk subsidiary.
SushiSwap is a decentralized cryptocurrency exchange built on the Ethereum blockchain. Its price has skyrocketed to about $19, representing a 30-fold gain from a November 2020 low. The protocol has proven one of the biggest success stories of decentralized finance, or DeFi, generating over $100 million in cumulative revenue since launch, Todaro wrote Thursday in the newsletter Bankless.
And similar to the way stockholders might receive a dividend, holders of the SUSHI get a share of the SushiSwap platform's fees. “Recently, SushiSwap initiated a process whereby a portion of trading fees across the platform are paid out to token holders,” Todaro wrote.
This ownership stake is essentially a dividend, which can be used to value SUSHI, similar to the way a bond's price is a function of the yield.
- “In traditional equity markets, dividend paying stocks are often valued by discounting future cash flows to the present by and expected discount rate,” Todaro wrote.
- Todaro used historical trading volumes and fees to calculate cash flows.
- Based on his assumptions, Todaro estimates SushiSwap's intrinsice market value at around $12.6 billion, which equates to a token value of about $100.
Despite the lofty valuation, Todaro cautioned investors about considerable risks in the market, including a slump in DeFi cryptocurrency trading.
This industrywide risk could “severely impact SushiSwap’s volumes and hence trading fees,” Todaro wrote.
Sizin için daha fazlası
The tokenization platform reported record quarterly revenue but continued to post losses as it invested in growth and public-company preparations tied to its merger with Cantor Equity Partners II.
Bilinmesi gerekenler:
- Securitize reported record first-quarter revenue of $19.5 million, up 39% from a year earlier, driven largely by rapid growth in its asset-servicing business.
- The company remains unprofitable, with its net loss widening to $7.9 million as it increases spending ahead of a planned public listing via a SPAC merger with...
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