Long-Term Holders Are Moving Away From One Ethereum DeFi Altcoin, Says Analytics Firm Santiment

Long-term holders of one 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 that SushiSwap’s (SUSHI) total value locked (TVL) has witnessed a massive 93% decline since November of 2021.

In comparison, the TVL of SushiSwap competitor Uniswap (UNI) has only dropped 63% over the same timeframe, according to Santiment.

The firm also says that the number of unique active wallets interacting with SushiSwap is seeing very little growth.

“Looking at the UAW – the number of unique active wallets (UAW) interacting or performing a transaction with a DApp’s smart contracts – there are some occasional spikes but overall, there’s little real growth as protocol usage on average remains pretty low.”

Source: Santiment

As for Uniswap, Santiment says that the number of unique active wallets transacting on the network is on the up and up.

“Meanwhile, on Uniswap, UAW has been increasing for the last year and at a pretty organic rate. Protocol usage on average maintains at levels higher than one year ago, indicating a healthy protocol.”

Enlarged
Source: Santiment

Santiment also looks at its dormant circulation metric, which tracks the tokens that move after staying inactive for more than one year. According to the firm, sudden surges in previous dormant coins have historically preceded sharp price drops, and such a spike has just occurred for SUSHI, implying 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 holders have been exiting their positions. Previous Dormant Circulation (365) spikes have sharp price declines following it. We are now observing yet another spike that happened yesterday.”

Source: Santiment

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia