Sui, a rising star in the Layer-1 Blockchain scene, has witnessed a spectacular increase in activity and value this year. Thanks to the recent DeFi boom and its unique technical features, it has surpassed established players such as Cardano (ADA coin), Near and Aptos in terms of total value locked (TVL). This remarkable comeback story begs a question… What is behind Sui’s success and will he keep the momentum going?
ADA coin and these 2 are left behind
Sui’s journey was started by former Meta employees in May 2023 and is powered by the Move programming language. However, its debut on Binance’s launchpad was met with turbulence. The native SUI token lost 68% of its value in its first five months. It was further exacerbated by concerns about accusations of token supply manipulation against founders.
However, a major turning point came with the “script” craze. Inspired by Bitcoin’s NFT phase, inscription activity on Sui has blossomed by recording arbitrary “data” directly onto the blockchain without smart contracts. This ignited a spark that demonstrated Sui’s scalability and transaction speed. Sui processed 13.8 million blocks on December 22, reaching a rate of 6,000 transactions per second (TPS). In particular, gas prices remained low even during this high traffic period, attracting both developers and investors.
DeFi drives Sui growth
DeFi protocols have emerged as the key catalyst for Sui’s recent growth. cryptokoin.com According to data, since January 1, the total value locked in Sui has more than doubled. So now it’s over $593 million. Two lending platforms, Scallop Lend and Navi Protocol, quadrupled their TVL. So they have become the leading DeFi players of the network. This increase is due to Sui’s fast and cheap transactions, making it ideal for DeFi applications.
Moreover, Sui enables assets to evolve within applications in innovative ways. He also has unique properties such as the object ability that allows him to interact. This opens doors for a variety of use cases beyond DeFi, including NFTs, gaming, and social platforms. Despite his impressive climb, Sui still faces challenges. The youth ecosystem needs further development and competition from established players such as Ethereum is still fierce.
However, Sui’s recent gains indicate strong potential. Its innovative technology, growing community, and focus on user experience are critical. It puts Sui in a good position to carve out a place for itself in the Blockchain world. If it can continue to attract quality developers, build a diverse ecosystem, and navigate regulatory complexities, Sui’s upward trajectory can continue to outpace its competitors.
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