- Sui Network upsets Solana in terms of trading activity.
- As TVL continued to soar, the network’s DEX volume plummeted.
There has been a significant increase in activity on Solana (SOL) over the past few months. But recently, other competitors have appeared to go toe-to-toe with the network.
For example, SUI network has performed better recently Solana in terms of day trading.
This indicates that not only is Solana struggling to attract new users and engage with the ecosystem, but users are also moving to other networks and ecosystems.
Solana doesn’t really have a problem.
However, not all of these transactions are legal. In a recent tweet, Artemis revealed that a large number of transactions taking place on the SUI network are being caused by Spam Sui.
To give context, the Sui network has a dApp called Spam Sui that offers a unique “earn by spamming” concept. Unlike traditional cryptocurrency mining, you can earn “SPAM” coins by simply sending transactions on the Sui network.
The more transactions you send, the more spam you will receive.
With 1 billion SPAM coins created every day, the focus is on generating high volumes of transactions.
Source: X
So, despite the Solana network’s slowdown in activity, it’s hard to believe that the Sui network will be able to dethrone Solana any time soon.
State of DeFi
Another factor that could impact the Solana ecosystem is the state of DeFi. In particular, Solana Network’s Decentralized Exchange (DEX) trading volume has decreased significantly since March.
Poor DEX performance is a sign that users are choosing other networks for trading and exchange purposes.
Source: Artemis
Despite the sharp decline in DEX trading volume, Solana Network’s total value locked (TVL) continued to grow, reaching $4 billion at press time.
Realistic or not, the market cap of SOL in ETH is:
This suggests that while Solana’s DEX failed to show positive performance, other segments were able to make up for the slump and create value.
Source: Artemis
Looking at the SOL token status, we observed that it mostly moves sideways. Over the past 24 hours, the price of SOL has increased by 0.55% and is trading at $144.98 at the time of writing.
Source: Santiment