Why SOL cryptocurrency is safe
- Despite the increase in trading activity on Sui Network, Solana
Remain resilient despite competition. - Despite the decline in DEX trading volume, Solana’s Total Value Locked (TVL) continues to increase.
- Sui Network’s spam transactions may inflate its apparent success.
Solana maintains a strong position in the cryptocurrency market, driven by increased Total Value Locked (TVL) as competition from Sui Network intensifies.
Sui Network surpasses Solana in trading activity
Recent developments have shown that Sui Network has surpassed Solana in terms of daily trading. This means changes in user engagement, with some users migrating to other networks and ecosystems. However, it is important to note that not all transactions on Sui Network are legitimate and a significant number are attributed to Spam Sui, Sui Network’s dApp.
Spam trading fuels Sui Network’s success
Spam Sui operates on the “Spam Earn” concept where users earn “SPAM” coins by sending transactions on the Sui Network. Although this has increased transaction volume, the sustainability and legitimacy of this model are questionable. Despite the increased activity of the Sui Network, it is unlikely that Solana will take the throne in the near future.
Solana’s DeFi environment
While Solana’s decentralized exchange (DEX) trading volume has declined since March, total value locked (TVL) continues to increase, reaching $4 billion at press time. This means that despite the DEX’s poor performance, other sectors within the Solana ecosystem are creating value.
SOL Token Performance
The SOL token is moving mostly sideways, with a slight growth of 0.55% over the last 24 hours. At the time of this writing, SOL was trading at $144.98.
conclusion
Despite competition from Sui Network, Solana still maintains a strong position in the cryptocurrency market. Increasing TVL and token price elasticity suggest a positive outlook for the network. However, the decline in DEX trading volume indicates a need for improvement in certain areas. As the cryptocurrency landscape continues to evolve, it remains to be seen how Solana will adapt and grow.
