Recently, a project has been quietly attracting attention—SQD Network's performance on Arbitrum is indeed worth noting. Data shows that the 24-hour trading volume has skyrocketed from $100,000 to $800,000, a 700% increase, and the number of token holders has grown by 500%. While this growth rate may seem exaggerated, unlike some projects' false prosperity, there is sustainable support behind it.

To understand why this project is so hot, you first need to know what it does. SQD's core business is data infrastructure—providing blockchain data indexing and query services for enterprises. It may not sound very glamorous, but this is precisely one of the most overlooked needs in the Web3 world. As on-chain data explodes, efficiently reading and analyzing this massive information has become a major challenge. SQD aims to solve this pain point.

Looking at on-chain transfer patterns, there are three large transactions. However, these transfers are spread out over different times rather than concentrated dumps—this suggests they may be genuine institutional or large holder moves, rather than project team manipulations.

In terms of competitive landscape, the outlook is not optimistic. The Graph is already a leading player in data infrastructure, and Covalent is also competing in the same space. For SQD to break through, it needs to differentiate itself in performance and cost or find a foothold in a niche market. This is not a matter that can be decided in one or two months.

From an investment perspective, infrastructure projects have a logic that is completely different from meme coins. There won't be sudden surges, but once established, their value tends to be quite stable, making them suitable for long-term holding.

Advice for interested parties: closely monitor the growth in SQD's customer base and actual usage. If they can sign major DApps or well-known enterprises as clients, it will confirm that the product has real competitiveness. At that point, it would be a better time to deploy. Participating at this stage still carries relatively high risk.