TVL surpasses 1 billion USD, market capitalization ranks in the top 20, analysis of recent trends for Sui

Sui is a permissionless, PoS-based Layer 1 blockchain developed by Mysten Labs, designed to provide instant settlement and high throughput, supporting a variety of next-generation latency-sensitive decentralized applications. The project was established after the disbandment of the original Facebook project Libra/Diem team and has garnered capital attention and funding.

Market Performance

According to market data for 2024, SUI has performed excellently:

• Market capitalization growth: SUI has performed strongly since the fourth quarter of 2023, with a quarter-on-quarter market capitalization growth of 120%, and an additional growth of 176% in the first quarter of 2024.
• Price Trend: SUI exhibited certain volatility in 2024, but overall showed an upward trend. Especially on March 27, 2024, SUI reached an all-time high of $2.18. As of October 3, 2024, the SUI price further advanced, hovering around $1.92.
• Current Price: $1.92 (as of October 3, 2024, noon)
• All-time high: $2.18 (March 27, 2024)
• Increase: Up more than 100% in the past three months

Sui Ecosystem Projects

Since the launch of Sui on its own network, its ecosystem has rapidly expanded, attracting numerous developers and enterprises to participate.

DeFi project

Currently, there are 5 protocols with over 100m in TVL, namely:

1. Cetus: In the SUI ecosystem, Cetus occupies a significant market position with its TVL of $180 million. As an efficient decentralized trading platform, Cetus offers a user-friendly trading experience, supports a wide range of token swap options, and allows users to participate in liquidity pools to potentially earn trading fee income.

2. DeepBook: The first order book DEX in the Sui ecosystem, it provides a decentralized liquidity layer for Sui. DeepBook is jointly built by MovEX and the Sui Foundation, and has been integrated into Sui's official framework.

3. Navi: As the largest lending platform by TVL in the SUI ecosystem, Navi manages assets of up to $410 million. This protocol allows users to collateralize their assets to borrow other assets, offering flexible funding solutions that support various investment and financial strategies.

4. Scallop: Scallop also holds a significant position in the SUI ecosystem, managing assets worth $170 million. It offers users additional funding options, supporting the financial diversity and robust growth of the SUI ecosystem.

5. Suilend: The Suilend lending protocol is the first project of a well-known lending platform outside its native ecosystem. By launching on Sui, the platform leverages the inherent security features integrated into the Move language to provide built-in protection for its smart contracts.

wallet solution

• A well-known trading platform wallet: As a comprehensive digital asset management tool, it supports multi-chain functionality, including seamless integration with the SUI chain.
• Sui Wallet: Sui Wallet is one of the most widely used wallets in the SUI ecosystem, known for its comprehensive features and user-friendly interface.
• Suiet: Suiet (pronounced "sweet") is a self-custody wallet built on the Sui blockchain, and all its content is open source.

game project

• SuiPlay0x1: A lightweight handheld gaming device that has already undergone pre-sales, selling over 2000 units, equipped with native Web3 features, and plans to launch globally in 2025.
• DARKTIMES: A battle royale game on Sui, developed by a well-known game studio. DARKTIMES leverages the unique properties of Web3 technology to host digital assets via Sui, including the $TIMES token integrated into the DARKTIMES ecosystem, Genesis NFTs, and various decorative items for in-game characters.

Meme Token

The recent meme of Sui references other successful memes on public chains, combined with the water element characteristics of Sui itself, making it feel quite familiar. It is worth mentioning that the meme fluctuations on Sui are currently quite large, and there are also many risks, so investors should exercise caution.

The following are some major meme tokens:

1. $Hippo: market capitalization of approximately $129 million
2. $BLUB: market capitalization approximately 50.52 million USD
3. $FUD: market capitalization approximately 36.21 million USD

Team Members

Mysten Labs is a research and development company founded by former executives of Meta (Facebook) Novi Research and the chief architect of the Diem blockchain and Move programming language.

• Evan Cheng: Co-founder and CEO of SUI, formerly the Engineering Director at Facebook, responsible for Novi research.
• Sam Blackshear: Chief Technology Officer and the main designer of the Move programming language.
• George Danezis: Chief Scientist, Cambridge PhD, Professor at USL, with extensive experience in blockchain and privacy protection technologies.
• Avery Ching: Chief Technology Officer, former senior engineer at Facebook.

Token Economics

• Total Supply: 10 billion SUI coins
• Distribution status:
  1. Distribution after 2030: 52.2% (522 million coins)
  2. Community Reserve: 10.6% (106 million coins)
  3. Staking Subsidy: 9.5% (94.941 million tokens)
  4. Series A investors: 7.1% (71.417 million tokens)

5. Series B investors: 7% (69.56 million coins)
6. Early contributors: 6.1% (61.37 million coins)
7. Community Access Plan: 5.8% (58.2 million coins)
8. Mysten Labs Treasury: 1.6% (16.348 million tokens)

Key Events of 2024

1. Network Iteration Update: The SUI network underwent two significant updates in September, and the Sui mainnet has now been upgraded to version V1.34.2, while the protocol has been upgraded to version 60.

2. New platforms and tools:

   • Hydropower Program: An eight-week virtual accelerator program that provides hands-on workshops and industry expert guidance for technical teams to promote the development of the SUI ecosystem.
   • Enoki Platform: An enterprise solution platform launched by Mysten Labs, where businesses can embed public ledger solutions into their applications, products, and services.

3. The native USDC of a stablecoin company has officially landed: this integration will enhance the usability and interoperability of Sui, bringing higher liquidity and a simplified trading experience.

4. Sui Bridge officially launched on the mainnet: it provides a native connection between Ethereum and Sui, marking an important advancement in interoperability for the Sui network.

5. A certain asset management company launched the SUI trust fund: the assets under management (AUM) quickly surpassed 1 million USD, exceeding 2.5 million USD as of October 2.

6. Community Activities:

   • Sui Builder House Singapore Station: showcased major announcements and breakthrough collaborations of SUI.
   • Sui Connect New York Station: Aims to bring the Web3 community together to share ideas and learn about blockchain industry knowledge.

Advantages of Sui Technology

1. Object-oriented account model: Provides greater flexibility and scalability, making asset management more intuitive and efficient.

2. Native randomness: Provides a solid foundation for the development of various applications, especially critical in scenarios involving probability games, random allocation of NFTs, and more.

3. Native zk (Zero-Knowledge Proof): Supports native zero-knowledge proofs, playing an important role in protecting user privacy.

4. zkLogin: The first truly trustless, reliable, and user-friendly authentication mechanism in Web3.

Prospects and Challenges

Advantages:

• Excellent technology
• A strong team
• Market Heat

Challenge:

• Market Competition
• The subsequent momentum of Meme
• Lack of killer applications
• Transparency issues

Conclusion

The SUI project has long-term development potential in the future due to its innovative technological architecture and strong team support. However, despite SUI's significant breakthroughs in technology, challenges still lie ahead. Potential investors should closely monitor the progress of its ecological development, especially the launch of new applications and innovations, and conduct a detailed assessment of market risks.