Ethereum-Based DeFi Platform Struggles to Compete, According to a Recent Report
According to Santiment, SUSHI's lackluster performance could be due to its inability to retain users and compete with other DeFi platforms.
Santiment, a crypto analytics firm, has reported a significant decline in the TVL of SushiSwap (SUSHI), an Ethereum-based DeFi altcoin, since November 2021.
The TVL of SUSHI has dropped by 93%, while the TVL of its competitor Uniswap (UNI) has only decreased by 63% over the same period.
Santiment’s latest findings suggest that SushiSwap’s unique active wallet count has plateaued while Uniswap’s count is steadily growing.
UNI’s growing number of unique active wallets and healthy protocol usage suggest a brighter outlook for the token.
Furthermore, the firm’s dormant circulation metric highlights a recent increase in dormant SUSHI coins, indicating that long-term investors are offloading their holdings. This pattern has previously signaled a steep drop in prices.
READ MORE: Crypto Market Update: Top Analyst Shares Insights on Four Bullish Coins
The correlation between the supply of SUSHI on exchanges and the dormant circulation metric also supports the notion that long-term holders have chosen to divest their positions.
It is worth noting that the asset management giant Goldentree unstaked almost 6 million SUSHI tokens ($2.68 million) and transferred almost half of them to Binance.
The tokens were received at an average price of $1.24 in September, and October 2022 and then they were dedicated for staking. If the owner of the tokens decides to sell his holdings at the current price, he will be at a loss.
At the time of writting SUSHI is trading at $1.04 after a 14.2% weekly decline. The cryptocurrency’s current market cap is valued at $231.3 million, according to CoinMarketCap data.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
