- Sui Network has upended Solana in terms of transaction activity.
- Live trading volumes on the network declined as TVL continued to rise.
Activity on Solana [SOL] It has grown significantly over the past few months. However, recently, other competitors have been seen competing with the network.
For example, grid SUI recently excelled Solana in terms of daily transactions.
This indicates that not only was Solana having difficulty attracting new users and creating engagement in its ecosystem, but users were also migrating to other networks and ecosystems.
Solana isn’t really in trouble
However, not all of these transactions are legitimate. In a recent tweet, Artemis explained that a large number of transactions that were occurring on the SUI network were caused by Spam Sui.
For context, Sui Network has a dApp called Spam Sui which offers a unique concept of “spamming.” Unlike traditional cryptocurrency mining, you can earn “spam” coins simply by submitting transactions on the Sui network.
The more transactions you send, the more SPAM you receive.
With the staggering daily creation of 1 billion SPAM coins, the focus is on generating a high volume of transactions.
Source: X
So, it is hard to believe that the Sui network will be able to oust Solana anytime soon, despite the slowdown in activity on the latter’s network.
The state of decentralized finance
Another factor that could impact the Solana ecosystem is the state of decentralized finance (DeFi). It is worth noting that DEX (decentralized exchange) trading volumes on the Solana network have decreased significantly since March.
DEX’s poor performance indicates that users are choosing other networks for trading and swapping purposes.
Source: Artemis
Despite the decline in DEX volumes, TVL (total value locked) on the Solana network has continued to grow, reaching $4 billion at press time.
Realistic or not, this is the market cap of SOL in terms of ETH
This indicates that while Solana’s DEXes were not able to show positive performance, other sectors were able to pick up the slack and were able to generate value.
Source: Artemis
Talking about the state of the SOL symbol, it has been observed that it is mostly moving sideways. In the past 24 hours, SOL’s price has risen by 0.55% and is trading at $144.98 at the time of writing.
Source: Santiment