Introduction

The relationship between price and volume is a longstanding question in analysis of assets including stocks and cryptocurrencies. In this dashboard we revisit the question by focusing on the case of SUSHI on SushiSwap platform.

First, we will compare daily average of price and daily volume of transactions. Then, we will go on to hourly basis charts.

Analysis and results

The graph below shows how the average daily price of SUSHI and the total volume of swapping for SUSHI on sushiswap have been changed over time.

Overall, we can see both volume and price is declining over time. We can also see from the chart that most of the time the price and volume go up and down hand in hand. However, if we try to understand cause and effect, we can see that sharp changes in price are followed by rapid changes in volume.

As the measuring of volume in USD (IV) depends on the exchange rate of Sushi-USD which is DV in this analysis, it is wise to control the analysis with another variable which is not measured dependent to the price. Therefore, the number of transactions which indicates the demand or popularity of a token has been taken into account.

The graph below compare changes in price and number of transactions. Almost the same trend can be seen in this graph.

To provide a better understanding of the short-term effect of price on volume, the graph below has been depicted. In this graph, we can see clearly that considerable changes in price whether fall or rise can sharply influence the volume of transactions. As can be seen, almost all peaks (or rapid growth) in the volume graph are associated with a considerable change in price.

The graph below compares the number of transactions with price. Again we can see the relationship between sharp change in price and rapid growth in number of transactions. Changes in both trends on January 24th between 4.00 and 10.00 is telling.

Summary of findings

1- Over the course of analysis, the period of 30 days, decreasing the price of SUSHI associates with decreasing the volume of swapping Sushi. In long term, we can see the effect of price on volume.

2- However, in shorter term we can see the effect of change in price on volume.

Notes on data and method

For structuring data, ethereum.dex_swaps and ethereum.token_prices_hourly have been used.

• The focus of analysis is on current_date-30

• The address '0x6b3595068778dd592e39a122f4f5a5cf09c90fe2' is used for sushi token_address

• Platform sushiswap and symbol SUSHI are used for filtering ethereum.dex_swaps and ethereum.token_prices_hourly respectively.