- Activity in SUI surged, showcasing the resilience of the network.
- Sui’s fails to perform well in the DeFi space.
One of the most unexpected performances made by a crypto protocol was the recent activity seen on the Sui network [SUI].
The daily transactions occurring on the SUI network and the number of daily active addresses on the network grew materially over the last few days.
Sui remains resilient
However, this activity was caused by Spam Sui. The Sui network has a dApp named Spam Sui, introducing an innovative “Spam to Earn” concept.
Unlike conventional crypto mining methods, users accrue “SPAM” coins by merely executing transactions on the Sui network. The greater the volume of transactions, the higher the amount of SPAM received.
With an impressive daily output of one billion SPAM coins, the primary aim is to drive a substantial number of transactions.
Even though the activity on the network was generated by Spam Sui, many people took to Twitter to express how impressive it was for SUI to handle so many transactions.
Over the last few days, the SUI network achieved a throughput of more than 800 TPS.
Source: X
The high transaction volume handled by Sui demonstrates its scalability and potential to handle real-world use cases.
This can be very attractive to developers and users considering building or using applications on the Sui network.
However, the fact that the high transaction volume wasn’t due to genuine user activity can be seen as misleading. This might raise concerns about the network’s actual organic usage and could dampen sentiment.
Despite the surge in activity, Sui network failed to see growth in the DeFi department. The DEX (Decentralized Exchange) volumes on the network fell materially.
Over the last few weeks, the DEX volumes fell from 170 million to 90 million.
Source: Artemis
State of DeFi
Coupled with that, the TVL (Total Value Locked) on the Sui network had also fallen significantly. However, the revenue generated by the SUI network remained relatively the same.
This indicated that despite the declining interest in Sui network’s DeFi sector, the ability for the network to generate revenue remained unaffected.
Realistic or not, here’s SUI market cap in BTC’s terms
However, if the DeFi sector continues to underperform, Sui’s revenue generation might get affected.
Source: Artemis
At press time, SUI was trading at $1.13 and its price had grown by 5.03% in the last 24 hours.