SUSHI - Long-term holders reducing exposure?

Assets covered: $SUSHI

Metrics used: Supply on Exchanges, Dormant Circulation (365)


As if things weren't already bad enough from the macro side of things, SUSHI was recently served an SEC subpoena and things aren't looking too great for the protocol.

Let's take a quick look.


Sushi TVL - defillama

SUSHI's TVL have dropped by -93% ever since mid-Nov 2021 (FTX saga period) and is now sitting at $581.47M USD TVL.

Granted, the price of cryptoassets falling affects the TVL, it is also likely that folks are using less of SUSHI and moving away from it (We'll take a look at that in the next section)

Meanwhile, Uniswap's TVL dropped by -63% since mid-Nov 2021 and is now sitting at $3.71b USD.

Uniswap TVL - defillama

Protocol usage

Sushi protocol activity - Dappradar

According to Dappradar, Sushi's protocol usage appears to be struggling for the past year.

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.

Uniswap protocol activity - Dappradar

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.

Dormant Circulation (365)

Sushi Dormant Circulation 365 - Sanbase

Looking at the SUSHI token itself, there have been notable movements since the start of the year.

Dormant Circulation (365) - Shows the number of tokens that hasn't moved for at least 365 days making a move on a day.

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.

Supply on Exchanges

Supply on exchanges - Sanbase

SUSHI's Supply on exchanges coincides well with what we have observed in Dormant Circulation (365), suggesting that long-term holders decided to exit their positions.

So who capitulated recently?

Goldentree reduced exposure - @Lookonchain
Goldentree reduced exposure - @Lookonchain

According to Twitter user Lookonchain, it was the fund Goldentree. It had previously invested $5.2M into SUSHI back in October 2022.


Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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