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 an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
