• Long-term holders of SUSHI token have significantly reduced their holdings, causing the SUSHI protocol to experience a decline in growth.
• There has been an increase in the SUSHI 365-day dormant circulation, suggesting that long-term holders may be losing faith in a SUSHI revival.
• The Unique Active Wallets (UAW) metric has seen consistent growth and usage, but overall network growth has been minimal.

Overview of SushiSwap’s [SUSHI] Decline

Long-term holders of the token have significantly shredded their holdings. The SUSHI protocol has seen a decline in growth, thereby putting the network’s health at risk. Although associated with the DeFi movement, SushiSwap’s [SUSHI] recent escapades have reeked of adversity with the U.S. SEC knocking on its doors. However, the troubles of the project did not begin with the regulatory Subpoena it received lately. Instead, holders of the token have been considering and acting upon their exit strategy since the last year.

Dormancy Comes Alive

According to Santiment, the SUSHI 365-day dormant circulation had experienced several spikes amid the unfavorable market conditions of 2022 and since 2023 began. The metric describes the number of tokens that haven’t moved in one year being transferred on a particular day. Notably, the dormant circulation increase has been more visible, in large numbers since 20 February. A similar occurrence happened on 3 March, and most recently— on 22 March. This series of increases implies that long-term holders may have lost faith in a SUSHI revival. Hence, the resolve to exit their positions.

Is Support Back To Distrust?

Furthermore, Santiment data showed that the SUSHI spent coins age bands moved significantly on 23 March. The movement was one that could not be ignored, reaching as high as 10