Is THIS threatening the Solana ecosystem? Yes, but here’s why SOL is safe

Solana and Sui: A Competitive Landscape

Transaction Activity

The Sui Network has recently surpassed Solana in terms of daily transaction volume. This suggests that Solana faces challenges in attracting new users and fostering engagement within its ecosystem, leading to a shift of users to other networks.

Solana's Network Status

However, it's important to note that not all transactions on the SUI network are legitimate. Artemis has highlighted that a significant portion of these transactions are attributed to "Spam Sui," a dApp that rewards users with "SPAM" coins for sending transactions.

DeFi Market

The state of DeFi on Solana has seen a decline in DEX (Decentralized Exchange) volumes since March, indicating that users are seeking alternative networks for trading and swapping. However, despite this, the Total Value Locked (TVL) on the Solana network has continued to grow, reaching $4 billion.

SOL Token Performance

The SOL token has exhibited a sideways trend, with a slight increase of 0.55% in the past 24 hours. It is currently trading at $144.98.

Conclusion

While the Sui Network has outpaced Solana in transaction activity, it remains unlikely to dethrone Solana in the near future due to the presence of spam transactions. The state of DeFi on Solana, with declining DEX volumes but growing TVL, suggests a mixed picture. The SOL token's sideways movement indicates a lack of significant price fluctuations.

Source: X, Artemis, Santiment