As the world of cryptocurrency continues to evolve, investors and traders are always looking for the next big thing. However, recent developments for SUSHI, a popular decentralized finance (DeFi) protocol, suggest that things may not be looking too great for the platform.
According to a report by Santiment, SUSHI has recently been served with an SEC subpoena, adding to the already difficult macro environment for the platform. SUSHI’s total value locked (TVL) has dropped by a staggering 93% since mid-November 2021, now sitting at a mere $581.47 million USD. This can be attributed to both the fall in the price of cryptocurrency assets as well as a decrease in the usage of SUSHI.
In comparison, Uniswap’s TVL has also fallen, but only by 63% since mid-November 2021, currently sitting at $3.71 billion USD. Uniswap’s protocol usage has been steadily increasing over the past year, with higher levels of usage indicating a healthier protocol.
Looking at SUSHI’s protocol usage over the past year, there has been little real growth as protocol usage on average remains pretty low. While there have been some occasional spikes, they have not been sustained, indicating a struggle for the platform.
Furthermore, SUSHI’s token circulation has also been affected, with long-term holders exiting their positions. This is evident in the number of dormant tokens that haven’t moved for at least 365 days, which has seen a recent spike, suggesting that long-term holders have decided to exit their positions.
This is also reflected in SUSHI’s supply on exchanges, which has coincided with the increase in dormant circulation, suggesting that long-term holders are exiting their positions. According to Twitter user Lookonchain, it was the fund Goldentree that recently reduced its exposure to SUSHI, having previously invested $5.2 million into the platform in October 2022.
In conclusion, the recent developments for SUSHI are cause for concern for investors and traders alike. While the platform has certainly faced challenges over the past year, the recent SEC subpoena and decrease in protocol usage and TVL suggest that there may be more difficult times ahead for SUSHI.
Read more:
- Whale Moves In Altcoins: Santiment Advises Investors To Keep Watch On These Coins
- Crypto Projects Post Mysterious Image And Date On Twitter: What Could It Mean?