- Sui Network turned around Solana in terms of transaction activity.
- DEX volumes on the network plummeted while TVL continued to rise.
Activity in the sun [SOL] has grown significantly in recent months. However, other competitors were recently seen going toe-to-toe with the network.
For example, the SUI network https://twitter.com/DegenerateNews/status/1786786418636751249?t=Pl6Tm-BgxPII62psrt6a6A&s=19 Solana in terms of daily transactions.
This indicated that Solana was not only having difficulty attracting new users and generating engagement in its ecosystem, but that users were also moving to other networks and ecosystems.
Solana is not really in trouble
However, not all of these transactions are legitimate. In a recent tweet, Artemis clarified that a large number of transactions occurring on the SUI network were caused by Spam Sui.
For context, the Sui Network has a dApp called Spam Sui that offers a unique “Spam to Earn” concept. Unlike traditional crypto mining, you earn “SPAM” coins by simply submitting transactions on the Sui network.
The more transactions you send, the more SPAM you will receive.
With a staggering 1 billion SPAM coins created daily, the focus is on generating high transaction volume.
Therefore, it is difficult to believe that the Sui network can dethrone Solana any time soon, despite the slowdown in activity on the latter’s network.
State of DeFi
Another factor that could impact the Solana ecosystem would be the state of its DeFi. Notably, DEX (Decentralized Exchange) volumes on the Solana network had dropped significantly since March.
The poor performance of DEX indicates that users are opting for other networks for trading and exchange purposes.
Despite the drop in DEX volumes, the TVL (total value locked) on the Solana network had continued to grow, reaching $4 billion at the time of this publication.
Realistic or not, here is SOL Market Cap in terms of ETH
This suggested that while Solana DEXs were unable to show positive performance, other sectors managed to recover and were able to generate value.
Upon reaching the state of the SOL token, it was observed to move mainly sideways. In the last 24 hours, SOL price had risen by 0.55% and was trading at $144.98 at the time of writing.
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This is an automatic translation of our English version.
