Metrics Behind One of the Fastest Blockchains: Sui Network

Asset Spotlight: 

Sui Network is a layer 1 blockchain platform focused on speed, scalability, and user accessibility. The platform’s object-oriented approach and native programming language, Move, significantly improves transaction processing, enabling parallel execution and faster completion times. Several groundbreaking features, like zkLogin, sponsored transactions, and programmable transaction blocks, set new standards for user accessibility and friendliness within Web3 applications. The native token of the ecosystem is called SUI, and the project launched in May of 2023. 

Market Performance: 

The SUI token currently trades at $0.85, 60% down from its all-time high of $2.17, achieved in March 2024. It is up 5% for the year. The total supply of SUI is 10 billion, of which 2.5 billion are in circulation. The project's current market capitalization is $2.2 billion, and the last 24-hour trading volume is $215 million. 

Onchain Metrics: 

Sui Network today has about 371,000 daily active addresses (DAA) and processes about 2.5 million transactions daily. The all-time high for DAA was 2.2 million in May 2024 and 67 million for daily transactions in July 2023. The network generates $4,400 in fees daily; the highest single-day fee was $36,700 in May 2024. The network has also gained massive TVL in a short period; it is now at $597 million, and the all-time high for TVL was $744 million in March 2024.  

The Sui Network generates fees through transactions to cover the cost of computation and network usage. There is also a one-time payment for data storage, most of which is refundable upon data removal. Validators earn from gas fees and enhanced stake rewards influenced by storage fund dynamics, ensuring network security and efficiency. 

The spike in daily active addresses on the network in Q2 of 2024 was largely driven by the popularity of Sui 8192, a blockchain game in which each move counts as a transaction. Additionally, strategic initiatives by the Sui Foundation, including token allocations aimed at fostering network growth and the introduction of user-friendly features like sponsored transactions, contributed to increased user engagement and network adoption.  

Sector Overview: 

Sui Network is a layer 1 network among the top 20 protocols. The market capitalization of total layer 1 assets is about $1.78 trillion, and CoinGecko lists more than 150 layer 1 networks in this category. The top five-layer 1 networks are Bitcoin (BTC). Ethereum (ETH), BNB, Solana (SOL), Toncoin (TON), and SUI stand at number 16 on the back of a massive price rise and all-time high levels achieved in March 2024. 

Outlook: 

As Sui continues to enhance its transaction speeds and throughput, it will continue to attract new developers and users. Innovative features like zklogin and blockchain games have been the reason for the surge in activity. With more such features, it could surpass previous peaks. The landscape of layer 1 smart contract blockchains is very competitive, and Sui will have to maintain its competitive edge through innovation in interoperability and security.