TVL breaks $1 billion, market capitalization enters the top 20, analysis of recent developments of Sui

The Sui blockchain has performed impressively recently, with its market capitalization rising to the top 20. This article will provide an in-depth analysis of the latest developments of Sui.

Overview

Sui is a permissionless, PoS-based Layer 1 blockchain developed by Mysten Labs, founded by former Facebook Libra/Diem team members. Sui aims to provide instant settlement and high throughput to support the next generation of latency-sensitive decentralized applications.

Market Performance

The Sui market performed outstandingly in 2024:

• Market capitalization continues to grow, with a quarter-on-quarter increase of 120% in Q4 2023, and a further increase of 176% in Q1 2024.
• The overall price shows an upward trend, reaching a historical high of $2.18 on March 27, 2024.
• As of October 3, 2024, the price is approximately $1.92
• The increase in the past three months has exceeded 100%

Sui Ecosystem

The Sui ecosystem is developing rapidly, covering multiple fields:

DeFi project

According to DeFiLlama data, 5 protocols have a TVL exceeding 100 million USD:

• Cetus: DEX with a TVL of 180 million USD
• Navi: A lending platform with a TVL of $410 million
• Scallop: A lending protocol with a TVL of $170 million
• DeepBook: Order Book DEX
• Suilend: The first project on Sui by Solend

wallet

• OKX Wallet: Supports multiple chains including Sui
• Sui Wallet: The most widely used native wallet
• Suiet: Open-source self-hosted wallet

Game Project

• SuiPlay0x1: lightweight handheld gaming device, 2000 units have been pre-sold
• DARKTIMES: A battle royale game supported by Animoca

Meme Token

The popularity of Meme coins on Sui is rising, with major projects including:

• $Hippo: market capitalization 128 million USD
• $BLUB: market capitalization 50.51 million USD
• $FUD: market capitalization 36.2 million USD

These Meme projects draw on successful cases from the Solana ecosystem, combining the features of Sui, but carry higher risks, so investment should be approached with caution.

Team Background

The core team of Mysten Labs comes from the Novi research department and the Diem project of Meta(Facebook).

• Evan Cheng: CEO, former Facebook Engineering Director
• Sam Blackshear: Technical Director, Main Designer of Move Language
• George Danezis: Chief Scientist, blockchain and privacy protection expert
• Avery Ching: CTO, former senior engineer at Facebook

Token Economics

• Total Supply: 10 billion SUI
• Main allocation:
  • 52.2% allocated for distribution after 2030
  • 10.6% Community Reserve
• 9.5% staking subsidy
• 7.1% Series A investors
• 7%B round investors

It is worth noting that there are opinions suggesting that the Sui Foundation's commitment to "unallocated" tokens lacks actual constraints.

Key Events of 2024

1. The network has been upgraded to version V1.34.2, and the protocol has been upgraded to version 60.
2. Launch of the Hydropower Accelerator Program and Enoki Enterprise Solutions Platform
3. Circle's native USDC is about to land on the Sui network.
4. Sui Bridge officially launched on the mainnet, connecting Ethereum and Sui.
5. Grayscale launches SUI Trust Fund with assets under management exceeding 2.5 million USD.
6. Host multiple community events, such as Sui Builder House Singapore station and Sui Connect New York station.

Technical Advantages

1. Object-oriented account model: Enhances flexibility and scalability
2. Native randomness: Providing fairness assurance for applications such as games and NFTs.
3. Native Zero-Knowledge Proofs: Enhanced Privacy Protection
4. zkLogin: An innovative authentication mechanism that simplifies user experience.

Prospects and Challenges

Advantages:

• Advanced technology architecture
• Experienced team
• High market enthusiasm

Challenge:

• Intense market competition
• The sustainability of Meme projects is in doubt.
• Lack of popular applications
• Project transparency issues

Conclusion

Sui has demonstrated long-term development potential with its innovative technology and strong team, but still faces numerous challenges. Investors should closely monitor its ecological development progress and fully assess market risks.