- Activity on SUI increased, demonstrating the resilience of the network.
- Sui fails to perform well in the DeFi space.
One of the most unexpected actions performed by a cryptographic protocol was the recent activity observed on the sui network. [SUI].
The daily transactions occurring on the SUI network and the number of daily active addresses on the network have grown materially in recent days.
Sui remains resilient
However, this activity was caused by Spam Sui. The Sui Network has a dApp called Spam Sui, which features an innovative “Spam to Earn” concept.
Unlike conventional crypto mining methods, users accumulate “SPAM” coins simply by executing transactions on the Sui network. The greater the transaction volume, the greater the amount of SPAM received.
With an impressive daily production of 1 billion SPAM coins, the main goal is to generate a substantial amount of transactions.
Although the activity on the network was generated by Spam Sui, many people took to Twitter to express how impressive it was for SUI to handle so many transactions.
In recent days, the SUI network reached a throughput of more than 800 TPS.
The high volume of transactions handled by Sui demonstrates its scalability and potential to handle real-world use cases.
This can be very attractive to developers and users considering creating or using applications on the Sui network.
However, the fact that the high transaction volume is not due to genuine user activity can be considered misleading. This could raise concerns about actual organic usage of the network and could weaken sentiment.
Despite the increase in activity, the Sui network failed to see growth in the DeFi department. DEX (Decentralized Exchange) volumes on the network fell materially.
In recent weeks, DEX volumes fell from 170 million to 90 million.
State of DeFi
Along with that, the TVL (total value locked) on the Sui network had also dropped significantly. However, the revenue generated by the SUI network remained relatively the same.
This indicated that despite the decline in interest in the Sui network’s DeFi sector, the network’s ability to generate revenue was not affected.
Realistic or not, here is SUI Market Cap in terms of BTC
However, if the DeFi sector continues to underperform, Sui’s revenue generation could be affected.
At the time of this publication, SUI was trading at $1.13. and its price had grown by 5.03% in the last 24 hours.
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