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SushiSwap’s TVL Surges by 32.94% in a Week Amid Market Downturn
Despite the bearish market conditions, SushiSwap, a decentralized exchange (DEX) platform, has shown remarkable growth in its total value locked (TVL). According to ASXN, a digital asset firm, SushiSwap’s TVL increased by 32.94% in 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
SushiSwap Numbers Show Resilience Amid Turbulent Crypto Market
However, the revenue and activity of the platform declined in the same period. Token Terminal reported that SushiSwap’s revenue dropped by 7.4% in the last month, while its activity fell by 60%. This indicates that the DEX sector is facing a slowdown amid the market volatility and the dominance of Uniswap.
SushiSwap has been actively engaging with its governance and community to improve its performance and competitiveness. Recently, a proposal by DWF Labs, a global market maker, was passed by the Sushi governance—the proposal aimed to enhance the liquidity and trading depth of SUSHI and other pairs on the platform.
DWF Labs also planned to provide market-making support for SUSHI on major exchanges like Binance and OKX. Additionally, SushiSwap lent 2 million tokens to DWF Labs for 24 months, with a 5% annualized yield paid to the Sushi Treasury. DWF Labs also obtained a European Call Option with strike prices based on SUSHI’s spot price increase.
Despite the price decline of SUSHI, which was trading at $0.5901 at press time, whale interest in the token has risen. Santiment data showed that large investors have been accumulating SUSHI in anticipation of a price recovery. This could boost the confidence and optimism of SUSHI holders in the long run.
SushiSwap is one of the leading DEX platforms in the DeFi sector, with a unique tokenomics model and a loyal community. The platform has been making efforts to innovate and collaborate with other projects to increase its value proposition and market share. Whether these efforts will pay off in the future remains to be seen.
