- SushiSwap’s TVL rose significantly over the last week.
- Activity on the protocol continued to decline, as prices witnessed a correction.
The DeFi sector has experienced a downturn in recent months. With Uniswap’s dominance in the DEX sector, there was limited space for other DEX platforms to expand. Nevertheless, recent data indicated that SushiSwap [SUSHI] has been making progress and demonstrating growth despite the prevailing market downturn.
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Growing despite all odds
According to data provided by digital asset firm ASXN, SushiSwap’s TVL grew by 32.94% over the last week, reaching $21.3 million at press time.
Notable changes in TVL and fees earned over the past week:@eigenlayer TVL grew 182.33%. They re-opened LSTs deposits for restaking yesterday.@GMX_IO TVL grew 63.02%, and reached $34.7M.@sushiswap TVL grew by 32.94%, reaching $21.3M. pic.twitter.com/rsDAGtwSma
— ASXN (@asxn_r) August 23, 2023
In spite of the surging TVL, the revenue collected on the protocol continued to decline. Token Terminal’s data indicated that over the last month, the revenue collected by SushiSwap fell by 7.4%. One reason for the decline in revenue would be the falling activity on the SushiSwap network.
In the last month, the activity on SushiSwap dropped by 60%. This sharp decline in activity could hinder the growth potential of SushiSwap in the future.
Source: token terminal
What’s going on in terms of governance?
Despite the ups and downs of the protocol’s performance, the governance took an active role in making attempts to improve the state of the protocol.
A proposal was recently passed by the Sushi governance, related to adding liquidity to one of its pools. DWF Labs, a global digital asset market maker, proposed a collaboration to enhance V3 liquidity and SUSHI token trading depth.
The partnership involved providing at least $1.6 million additional liquidity to pairs like WETH/USDT, WETH/USDC, LDO/WETH, and more. DWF Labs committed to achieving an increasing market share: 3% in three months, 6% in six months, and 10% in nine months.
SUSHI support on exchanges like Binance and OKX with market-making depth was also part of the plan. SUSHI also planned to lend 2 million tokens for 24 months, with a 5% annualized yield paid to Sushi Treasury.
DWF Labs has a European Call Option with strike prices based on SUSHI’s spot price increase. The proposal passed with over 99.85% votes.
Source: Snapshot
Realistic or not, here’s SUSHI’s market cap in BTC’s terms
Whales get an appetite for SUSHI
Even though there was a lot of progress made by the SushiSwap protocol on the governance front, the price of SUSHI continued to decline. At press time, SUSHI was trading at $0.5901.
Despite the decline in price, whale interest in SUSHI continued to rise. Rising optimism from large investors could provide some impetus to SUSHI holders in the long run.
Source: Santiment