DeFi 'Vampire' SushiSwap Still Hemorrhaging Liquidity

Uniswap challenger SushiSwap continues to lose vital liquidity, with total value locked falling by 8% in the past 24 hours.

AccessTimeIconSep 30, 2020 at 12:27 p.m. UTC
Updated Sep 14, 2021 at 10:02 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

DeFi trading protocol SushiSwap, which threatened to sap the life out of rival Uniswap just two weeks ago, is still losing crucial liquidity.

  • Data from DeFi Pulse shows total value locked (TVL) in SushiSwap has dropped nearly 8% in the past 24 hours.
  • TVL represents the dollar value of the tokens locked into a protocol's smart contracts. While not universally accepted, it's generally considered a key success metric for decentralized finance (DeFi) projects.
  • This is particularly true for automated market maker (AMM) exchanges, such as SushiSwap and Uniswap, which rely on users depositing tokens in order to provide liquidity and create the trading experience.
  • As such, Wednesday's figures don't make for good reading; SushiSwap has been on a near-uninterrupted decline since mid-September when its creator made off with, and then returned, the dev fund.
  • After hitting an all-time high of $1.4 billion on Sept. 12, Sushi's TVL fell by two-thirds to nearly $490 million just a week later.
  • While that rate of decline has shallowed, TVL has still fallen a further $130 million to $354 million in the past nine days.
  • Wednesday's drop of nearly $50 million is the biggest since TVL fell by $100 million on Sept. 21.
SushiSwap TVL has fallen roughly 75% since its all-time high.
SushiSwap TVL has fallen roughly 75% since its all-time high.
  • This marks a significant change in SushiSwap's fortunes, which just weeks ago looked to supersede Uniswap after it took $830 million in vital liquidity.
  • However, a $500 million UNI airdrop and concerns over SushiSwap's founder saw most of that liquidity bounce back to Uniswap.
  • Indeed, from just $430 million in TVL in mid-September, Uniswap has made a dramatic snapback, becoming the first protocol to break the $2 billion milestone this week.
  • In the past 24 hours, Uniswap's TVL has risen by approximately 2%.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.