In the rapidly expanding realm of Decentralized Finance (DeFi), a newcomer named Sui, a Layer 1 blockchain built for scaling DeFi applications, has gone through an exhilarating journey. At the beginning of 2024, Sui experienced remarkable growth, with its Total Value Locked (TVL) – indicating the combined value of cryptocurrencies deposited in its DeFi protocols – reaching a new high of $724 million by late March. But this triumphant moment was short-lived, as the platform has since seen a decline.
SUI TVL Takes A Tumble
Although Sui’s TVL has decreased recently, it still amounts to $654 million, as reported by DeFiLlama. This represents a 12% decrease from its highest point, indicating a normalization after an initial growth spurt. It’s worth mentioning that Sui still looks strong compared to some more established projects in the industry.
Silver Linings For Sui
Despite the current decline causing some uneasiness, Sui looks at the situation more positively if we examine the longer term. In comparison to its value on New Year’s Day, the present TVL shows a substantial gain of 25.5%.
The strong upward trend for Sui actually begins earlier in the year, with an astounding 68% increase observed so far. This robust historical performance instills confidence in Sui’s ability to recover and possibly reach the esteemed list of the top 10 DeFi chains.
SUI Token Mirrors Market Trends
The cost of Sui’s own token, SUI, follows a comparable trend to its Total Value Locked (TVL). At present, it is priced at $1.65, which is approximately 30% lower than its peak price of $2.20, hit in late March. Although there has been a minor 2% rise day-to-day, the token experienced an 11% decrease over the last week when looking at the bigger picture.
Can Sui Recover its DeFi Mojo?
Reclaiming the TVL that was previously lost will be a significant challenge for Sui’s development team. It is important to determine why users have left, as there may have been safety concerns or technical problems that led them to withdraw their funds. Being open about these matters and taking swift action to resolve them will be crucial in restoring user trust.
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Building A Thriving DEX Ecosystem Is Vital
At the same time, a lively decentralized exchange (DEX) community forms an essential foundation for Sui’s future growth. Through DEXs, users can conveniently transact cryptocurrencies amongst themselves, eliminating the reliance on a central authority for intermediation.
Nurturing a thriving decentralized exchange (DEX) ecosystem on Sui blockchain will draw more users and resources, increasing its total value locked (TVL). Inviting well-known DEX platforms to transfer to Sui or promoting the growth of homegrown DEX projects could be productive approaches.
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2024-04-09 16:16