- Sui Network flipped Solana in terms of transaction activity.
- DEX volumes on the network plummeted as the TVL continued to soar.
Activity on the Solana [SOL] has grown significantly over the past few months. However, recently, other competitors were seen to be going toe to toe with the network.
For instance, the SUI network recently outperformed Solana in terms of daily transactions.
This indicated that not only Solana was having a tough time attracting new users and creating engagement in its ecosystem, but the 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 that were occurring on the SUI network were being 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 simply by sending transactions on the Sui network.
The more transactions you send, the more SPAM you receive.
With a staggering daily creation of one 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 dethrone Solana anytime soon, despite the slowdown of 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, the DEX (Decentralized Exchange) volumes on the Solana network had fallen significantly since March.
Poor DEX performances signal that users are opting for other networks for trading and swapping purposes.
Source: Artemis
Despite the plummeting DEX volumes, the TVL (Total Value Locked) on the Solana network had continued to grow, reaching $4 Billion at press time.
Realistic or not, here’s SOL’s market cap in ETH terms
This suggested that while Solana’s DEXes were not able to show positive performance, other sectors managed to pick up the slack and were able to generate value.
Source: Artemis
Coming to the state of the SOL token, it was observed to be moving mostly sideways. In the last 24 hours, the price of SOL had grown by 0.55% and was trading at $144.98 at the time of writing.
Source: Santiment