Long-Term Owners Are Moving Away From One Ethereum DeFi Altcoin, Says Analytics Firm Santiment
Long-term owners of an Ethereum (ETH)-based decentralized finance (DeFi) altcoin are taking a step back from their investments, according to crypto analytics firm Santiment.
In a new report, Santiment says SushiSwap’s (SUSHI) Total Value Locked (TVL) has witnessed a massive 93% decline since November 2021.
In comparison, the TVL of SushiSwap competitor Uniswap (UNI) has only fallen 63% over the same time frame, according to Santiment.
The firm also says that the number of unique active wallets interacting with SushiSwap is growing very little.
“When we look at UAW – the number of unique active wallets (UAW) that interact or perform a transaction with a DApp’s smart contracts – there are some occasional spikes, but overall there is little real growth as protocol usage on average remains quite low.”
As for Uniswap, Santiment says the number of unique active wallets trading on the network is increasing and increasing.
“Meanwhile, on Uniswap, UAW has been growing over the past year and at a fairly organic rate. Protocol usage is staying on average at levels higher than a year ago, indicating a healthy protocol.”
Santiment also looks at its dormant circulation metric, which tracks tokens that move after being inactive for more than a year. According to the firm, sudden surges in previously dormant coins have historically preceded sharp price drops, and such a surge has just occurred for SUSHI, suggesting that long-term holders are selling off their positions.
“Looking at the SUSHI token itself, there have been notable movements since the start of the year… From this we can observe that long-term owners have exited their positions. Previous Dormant Circulation (365) highs are followed by sharp price falls. We observe now another peak that happened yesterday.”
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Featured image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
