Sui entered the DeFi TVL top 10, what is the background behind the breakthrough?

SUI TVL has increased rapidly

The Sui Foundation on the 30th highlighted Sui Network’s growing influence in the DeFi sector. The network’s assets under custody (TVL) have exceeded $430 million (63.5 billion yen), an increase of nearly 1000% in the past four months. It’s moving into the top 10.

The amount of on-chain activity is also increasing. According to the foundation’s announcement, weekly statistics on on-chain transaction volume have increased by more than 1,200% since October last year.

Source: DeFillama

This is said to be due to incentives provided to early users and expectations for airdrops. In the Sui ecosystem, the strategy of staking SUI tokens and accumulating points to earn native tokens for each project is considered as one of the promising methods.

According to the foundation, applications within the Sui ecosystem are rapidly expanding. A wide variety of services are being developed, including liquid staking, decentralized exchanges (DEX), lending protocols, and DePIN (decentralized physical infrastructure network).

According to Blockchain Explorer, the number of transactions peaked in December last year and is currently stable. There has yet to be a noticeable increase in the number of active accounts.

In October last year, the SUI Foundation received an investigation complaint from South Korean regulators for allegedly manipulating the supply of SUI. In response, the SUI Foundation strongly denied the suspicion of supply manipulation and steadfastly insisted on the accuracy of the supply schedule.

The SUI Foundation also clarified that it has not sold SUI at all since the initial plan. In June of the same year, there was speculation that the undisclosed token release schedule was indicative of a potential sale of SUI, but the SUI Foundation issued a statement at the time denying any intention to sell.

connection:Sui Foundation denies suspicion of manipulating token supply SUI price drops about 8% from the previous day

Against this background, the price of SUI at the time plummeted to an all-time low of 55 yen. However, it has since rebounded markedly, and at the time of writing, its value has surpassed its all-time high, trading at 227 yen. The market capitalization is 250 billion yen, ranking 47th in the market.

Source: CoinMarketCap

connection:Aptos, Sui, Linera—Comparing the popular Diem (formerly Libra) L1 chains | Part 1

What is Sui?

Sui is a Layer 1 blockchain with smart contract functionality and is characterized by high processing power. Mysten Labs, founded by five former Facebook engineers, launched its mainnet in October 2022.

From a blockchain design perspective, Sui is looking to the next generation of 1 billion user participation. Sui’s system is designed to avoid conflicts between transactions (attempts to access the same data at the same time). Each data item (e.g., token, smart contract state, user assets, etc.) is treated independently as an “object” and is unlikely to affect each other even if different transactions are executed simultaneously.

We’re excited to take our partnership with @Alibaba_Cloud to the next level! Together, we are launching an array of new services to support current and new #Move developers on Sui.

These offerings include an AI-enabled development environment, educational programming across… pic.twitter.com/BmhUyxdxUt

— MystenLabs.sui (@Mysten_Labs) January 23, 2024

In January, the company entered into a partnership with Alibaba Cloud to improve the developer experience. The partnership will provide infrastructure support from Alibaba Cloud, incubator programs across Asia, and developer incentives through a global hackathon.

connection:The CEO of the Sui development company talks about the challenges of Web3 games and the advantages of Sui | WebX interview

The post Sui entered the DeFi TVL top 10, what is the background behind the breakthrough? appeared first on Our Bitcoin News.