- Sui Network has turned around Solana in terms of transaction activity.
- DEX volumes on the network plummeted while TVL continued to rise.
Activity on the Solana [SOL] has grown significantly in recent months. However, other competitors were recently seen to have come to terms with the network.
For example, the SUI network recently performed better Solana in terms of daily transactions.
This indicated that not only was Solana struggling to attract new users and create engagement in its ecosystem, but users were also moving to other networks and ecosystems.
Solana isn’t really in trouble
However, not all of these transactions are legitimate. In a recent tweet, Artemis clarified that a large number of transactions taking place on the SUI network were 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 large number of transactions.
Source:
So it is difficult to believe that the Sui network will be able to dethrone Solana anytime soon, despite the slowdown in 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, DEX (Decentralized Exchange) volumes on the Solana network had fallen significantly since March.
Poor DEX performance indicates that users are choosing other networks for trading and exchanging purposes.
Source: Artemis
Despite plummeting DEX volumes, TVL (Total Value Locked) on the Solana network had continued to grow, reaching $4 billion at the time of writing.
Realistic or not, here is the market cap of SOL in ETH terms
This suggested that while Solana’s DEXs failed to show positive performance, other sectors managed to catch up and generate value.
Source: Artemis
When we reached the state of the SOL token, it was observed to be moving mainly sideways. Over the past 24 hours, SOL’s price was up 0.55% and was trading at $144.98 at the time of writing.
Source: Santiment