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Author: Thor, Modern EREMITE Source: Onchaintimes Translation: Shan Ouba, Bit Chain Vision
Today, we will study a low -key ecosystem since its establishment, and try to answer the reason in this article.
SUI was created by Mysten Labs. It is said to be the next -generation blockchain, which aims to meet the demand for growing blockchain.You may ask, who is using the blockchain?As the web3 field provides new conquest places such as marketing, user acquisition and network effects, the web2 world that is gradually incorporated into the Web3 world is gradually finding its own path and transitioning to the web3 field.
A specific blockchain is required to meet their needs-we remember how expensive the cost of Ethereum will be in the fields related to mainstream use in the fields of mainstream use.EssenceRemember the ETH gas cost of more than $ 150 million during the Otherside NFT casting?
Indeed, this is why in recent months, even during the last bull market, we saw the demand for fast and cheap Layer 1 blockchain. This blockchain will meet the upcoming mainstream needs-or at least mainstream mainstream.The requirements of hype (if you use it as early as possible).
But what about Layer 2 ecosystems like Arbitrum or Optimism?Aren’t they a solution for the high GAS fee of Ethereum?
Yes, but there are still many things to do in Layer 2-so this is another topic of in-depth research, and if we want to meet the huge needs from the Tradfi world, we must immediately provide something. This is the single area.The blockchain can play the highest effect.
Point
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What is SUI and why does it compare with Aptos?
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The recent growth of the Sui ecosystem
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Matters that need attention
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Summarize
Learn SUI: The world of parallel chain
SUI and Aptos are often compared, because these two projects are released during the last round of the bear market, and both are related to the DIEM project that Facebook has been put on hold.The DIEM project was initially aimed at handling a small amount of lightweight payment traffic between wallets, but because the public was not ready to accept blockchain technology, and the US government did not allow giants such as Facebook to introduce payment processing infrastructure. The project was eventually calledstop.Therefore, both SUI and APTOS are based on the Layer 1 blockchain based on the POS consensus mechanism, and both adopt parallel execution to meet the upcoming mainstream adoption needs, which is not surprising.Although there are many technical differences in the two, such as the differences in consensus mechanisms or data architecture, these details have nothing to do with our discussion today, so we will not discuss in -depth.
What is really related is that both APTOS and SUI are considered projects that have a greater influence by venture capital institutions, which has led to a wider range of cryptocurrency communities.out.
Sui price performance
Aptos price performance
Another similarity is that these two blockchain use MOVE programming languages, but the language use is slightly different.On the one hand, APTOS uses the use of MOVE in DIEM, and SUI decides to change some concepts. It uses object -oriented ア プロ ー チ to make it more suitable for the public -this is why it is in line with the development trend of parallel Layer 1 blockchain.
In the next few months, we will witness another round of Layer 1, which is similar to the leading narrative of the 2020/21 cycle.However, this time we will see new competitors join the arena, namely Aptos, SUI, SEI, Solana, and the highly anticipated Monad that has not yet been launched.These are single chains, and they all support parallel execution, which aims to compete for the market share of the same market segment.
Reverse consensus: recent growth
As mentioned earlier, the price trend after the SUI was listed is not surprising, because the main transaction CTA decided to open the head and hold the position for several months -this proves that it is very favorable.However, in October 2023, when Bitcoin began to rise and eventually exceeded $ 30,000, SUI also believed that the bottom had arrived and began to rise.
However, the price is not the only indicator at the beginning, and the TVL on the SUI is also rising.From about 80 million US dollars in October 2023 to US $ 567 million today, the SUI ecosystem has attracted more funds, but the question is -how to attract these funds and what are the use?
The recent reason may be that the upcoming Wormhole airdrop speculation will promote the use of bridges and enhance TVL on each chain.Undoubtedly, once the airdrop snapshot is completed, these liquidity will not stay, but the recent part of the TVL surge is still a mystery.
What about Sui’s DEFI ecosystem?At present, we have seen some major DEFI protocols provide liquidity, borrowing and borrowings, decentralized exchanges and Cetus and Bluefin to build core infrastructure for the growing ecosystem.To further emphasize this idea, we can say that the inspiration DEFI protocol can become a way to attract users and liquidity; however, this must be synchronized with the establishment of various DAPPs and protocols with attracting developers.It is also worth mentioning that Bluefin has recently collaborated with Elixir -an agreement designed to improve the liquidity of the DEX order book.This led to Bluefin’s TVL soared by about 50%, from nearly 9 million US dollars to today’s $ 13.1 million.Whether this is the beginning of cross -chain integration, or the simple Elixir influence dissemination incident, it is still difficult to say. Therefore, it is worth paying close attention to the recent further integration of the SUI ecosystem.
In terms of attracting users and inciting emotions, there is another selling point that can become a trump card for SUI, which lacks tokens that lack ecosystem projects.If an encrypted project can do a marketing technique, it is to use the upcoming airdrop as a reward for using the project to hang the appetite of users.It is completely possible.
The most important thing is that we also see the launch of Stardust, which brings wallets, as the service infrastructure, aiming to attract the Gamefi builders, and they will use all the functions provided by SUI.On this basis, we see the interesting cooperation between MystenLabs (creator of Sui) and Team Liquid (one of the most well -known e -sports teams in Europe).In other words, SUI is trying to enter the gamefi world, but why do we see this change?
I have to say that in the fiercely competitive parallel L1, each ecosystem must find its own market segment to attract users and TVL, rather than competing for the same general audience.Solana seems to have found its own selling point in the encryption culture through its NFT and Memecoin, and SUI does not seem to copy the success story of others.Experience, its user experience is far better than the user experience we see on Starknet.
Facing the future: potential issues
Although the above content sounds very positive and hopeful, we should not forget to consider all potential risks and the upcoming unlocking incident, which may affect the price of the SUI token.
As mentioned earlier, the price of SUI has risen steadily since it has hit the bottom of $ 0.36 in October 2023. Since the beginning of 2024, it has risen by nearly 100%to almost $ 2.00.EssenceThis shows that for those who dare to take risks, they can indeed make profits from it, and explore the ecosystem and bet on its project and Memecoin. If the price rises, it will always have a lot of benefits.However, SUI is not the case.
The most famous DEFI project mentioned earlier, such as Bluefin, Aftermath, or Scallop, there is currently no token, except for Cetus, which may bring airdrop speculative in the future.However, at present, because there are no tokens worth speculative or investing, this seriously limits the attractiveness of the ecosystem.
The most obvious example can be the MEMECOIN season on Solana. It produces multiple mini cycles in the middle of a brief cooling period.In these cooling periods, the wider market has time to turn to other trends. These trends are usually related to Memecoin on different chains -SUI.The most anticipated MEMECOIN release on SUI is Memecoin with a transaction code $ Fud. It follows the most speculating trend at the time, that is, tokens with the theme of dogs.However, the price trend is lacking, because after the initial surge, interest weakened, and the liquidity quickly left the chain.
A way of seemingly attracting liquidity to the ecosystem finally turned into a flash, because liquidity disappeared within a few hours after the release.In addition, we can also see very few people as a city, that is, the number of people who buy and sell tokens, about 150 people around the top 4 MEMECOIN, while the $ SUI itself is slightly higher than 250.Needless to say, even on the Solana chain that loses power, we can see thousands of city merchants every day, so it can be said that the interests of the SUI ecosystem have almost no existence.
There is also an unreasonable problem, that is, the unlocking plan.The monthly unlocking volume will account for about 0.65% of the total supply, which is equivalent to about 5.5% of the current market value, that is, the $ 110 million in US dollars-these are rough estimates, because the price of $ SUI has been changing, and the market value percentage percentage percentage is percentage.The value of the US dollar also changes.Although the monthly supply seems to be digested by the market, the unlocking that will occur in May may seriously affect the price.
On May 3, the supply of SUI would increase by 8.27%, which was about 1.4 billion U.S. dollars in US dollars, accounting for about 71%of the current market value.It is difficult to predict what the market will react to such a large -scale unlock.However, we may see the so -called “liquidity cushion” gradually established, which will to a certain extent to offset the release of the release, just as the $ DYDX unlocking is usually shown.On the other hand, considering that the current interest in the SUI ecosystem is relatively low, it may be difficult to attract enough liquidity to establish such a security buffer. The market will start pricing a few weeks before unlocking.
Although it is impossible to predict the future, the transaction volume and market value ratio of the market and SUI can tell how the market tries to cope with the upcoming unlocking.
Conclusion
In the next few months and years, the popularization of blockchain may have explosive growth, not only mainstream users, but also the web2 brand -just as we have seen this trend formed during the 2021 yuan cosmic boom.Considering all these, the demand for fast and cheap blockchain is growing, these blockchain will help millions of users to explore emerging exciting areas and many DAPPs that follow.
SUI is not the only competitor in this field, but also powerful competitors such as Solana, Aptos, SEI, and Monad that will be launched soon. They will compete for market share in the “mainstream” market segment.In addition, we will see the surge in the Layer 2 ecosystem. After a period of lag, these ecosystems may provide similar functions. In addition, the overall strength and network effect of Ethereum may become the sameStrong competitors to compete for market share on the route.
The leading theme of the previous round was to replace the war between Layer 1 project.This time we will see similar scenes, but this time we will see the war between Layer 1 ecosystems. InsteadThe first choice for mainstream “DAPP.
