SushiSwap [SUSHI] DAU spikes due to Arbitrum’s memes, but…

• The number of active users on SushiSwap increased.
• Despite a drop in price, SUSHI’s funding rate remained positive.

SushiSwap [SUSHI] has seen an increase in its Daily Active Users (DAU) according to Token Terminal data. The rise in user activity made the popular Decentralized Exchange the third-highest, only behind trending projects like Arbitrum [ARB] and Mina Protocol. 

Realistic or not, here’s SUSHI’s market cap in ARB’s terms

The DAU shows the number of unique public addresses that have transacted with a decentralized Application (dApp) smart contract. An increase in this metric means that the demand is high.

Source: Token Terminal

In the intersection between memes and an absence of…

Data from the blockchain and dApp data platforms showed that DAU increased by 82%. But one factor that has played a part was the hike in the number of humorous memes on the Arbitrum network. 

Since the Ethereum [ETH] scaling solution launched on the Arbitrum network, many meme tokens related to it have followed. As such, some require the SushiSwap DEX to claim and/or trade.

For instance, PEPE, which produced a Shiba Inu [SHIB] like 2021 performance in a matter of days, was traded on the DEX via the Arbitrum network.

Despite the increased activity, SushiSwap lacked growth in other areas. One of those is network growth. When this metric rises, it means that many new addresses are being created on the network. But when it decreases, it depicts a shortfall in new user adoption.

At press time, the project’s network growth was down to 15. And following the same route was the weighted sentiment. This metric, at the time of writing, was at -0.685.

A negative sentiment like this implies that social commentary about the SUSHI token did not align with the enthusiasm.

Source: Santiment

No DEX matches the SushiSwap liquidity

Regarding the funding rate, on-chain data showed that it has been positive for a while. Therefore, this suggests that the perpetual contract SUSHI price was higher than the mark price. So, longs have been paying the periodic amounts of the same-sized position to shorts. 

However, the increase in open contracts did not halt the decrease in SUSHI’s value. At the time of writing, the token decreased by 3.44% while exchanging hands at $1.06.

Source: Santiment

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As a result of the Arbitrum memes, SushiSwap’s DEX volume increased by 236% in the last 24 hours. According to DeFiLlama, the metric was at 61.68 million. This means that a lot of liquidity has flowed into the SushiSwap ecosystem.

Although Ethereum has been the highest contributor to the volume over the month, the second-largest blockchain struggled to overtake its optimistic L2 protocol in the last few days.

Source: DeFi Llama