Sui Public Chain Research

Sui is a next-generation Layer 1 blockchain developed by Mysten Labs, utilizing the innovative Move programming language and an object-centric data model, aimed at addressing the scalability and performance bottlenecks of traditional blockchains. Since the mainnet launch in 2023, Sui has shown strong development momentum in areas such as DeFi, NFTs, and gaming, with TVL surpassing $2 billion in 2024, making it one of the fastest-growing blockchain platforms.

Technical Architecture Analysis#

Advantages of the Move Programming Language#

Sui is built on the Move programming language, which is designed specifically for digital asset management and has the following core features:

Asset Security: Move treats digital assets as "first-class resources," which cannot be copied or accidentally destroyed and can only be moved between storage locations.
Modular Design: Assets are encapsulated in modules that contain resource descriptions and operation methods, supporting automatic updates and high composability.
Linear Logic: Ensures that resources representing digital assets cannot be duplicated or inadvertently destroyed, effectively preventing reentrancy attacks.

Object-Centric Data Model#

Sui adopts a unique object-centric model, distinguishing it from traditional account models:

Parallel Execution: Each object can be independently modified in parallel, significantly enhancing transaction throughput.
Dynamic NFT Support: Supports dynamic updates of NFT attributes, particularly suitable for gaming applications.
On-Chain Storage: NFT metadata is stored directly on-chain, achieving true decentralization.

Consensus Mechanism#

Sui employs a Delegated Proof of Stake (DPoS) mechanism:

Narwhal & Bullshark: Innovative consensus algorithms that support high throughput and low latency.
Instant Finality: Simple transactions can achieve sub-second confirmations.
Horizontal Scalability: Theoretically supports unlimited scalable transaction processing capabilities.

Token Economics#

Functions of the SUI Token#

SUI, as the network's native token, has four core functions:

Gas Fee Payment: Transaction fees for all network operations.
Staking Participation: Participate in the PoS consensus mechanism to earn staking rewards.
Governance Rights: Participate in on-chain governance voting.
Liquidity Asset: Supports the entire Sui economic ecosystem.

Token Distribution#

Total Supply: 10 billion SUI (cap).
Community Reserve: 50% allocated for community development.
Investors: 20% allocated to early investors.
Team: 14% allocated to the development team.
Mysten Labs: 10%.
Foundation: 6%.

Staking Mechanism#

Liquid Staking: An important upgrade launched in 2024, allowing staked tokens to maintain liquidity.
Validator Delegation: Users can choose any validator for delegation.
Reward Distribution: Rewards are distributed at the end of each epoch (24 hours).

Ecosystem Development#

DeFi Ecosystem#

Sui's DeFi ecosystem experienced explosive growth in 2024:

TVL Growth: Increased from $150 million in 2023 to over $2 billion in 2024.
Core Protocols:
- Cetus: Leading DEX and concentrated liquidity protocol.
- DeepBook: Sui's native liquidity layer.
- Aftermath Finance: Comprehensive DeFi platform.
- Suilend: Lending protocol.

NFTs and Gaming#

Dynamic NFTs: Support real-time updates of attributes, providing unique advantages for gaming.
On-Chain Storage: NFT metadata is fully decentralized.
Gaming Ecosystem: Over 65 game studios are developing approximately 70 new games.
BIRDS: Sui's flagship game, attracting 1.3 million on-chain players.

Infrastructure#

Sui Wallet: The official wallet supports DeFi, NFTs, and staking.
SuiNS: Domain service that simplifies blockchain addresses.
Walrus: Decentralized storage platform.

Market Performance#

Price Performance#

2024 Growth: SUI token price achieved a 10.6x increase.
Market Cap Ranking: Ranked as the 8th largest blockchain platform.
Current Price: Approximately $4.50 (as of January 2025).

Network Activity#

Daily Active Users: Increased from 2.4K to 195.8K (an increase of 81.7 times).
Daily Transaction Volume: Increased from 13.3K to 433.7K (an increase of 32.5 times).
Annual Transactions: Over 560 million on-chain transactions in 2024.

Competitive Advantages and Challenges#

Advantages#

Technological Innovation: The Move language and object model provide unique advantages.
Superior Performance: Supports parallel execution, with theoretical TPS reaching 160K+.
Developer-Friendly: Provides a safer and more efficient programming environment for developers.
Diverse Ecosystem: Balanced development across multiple fields including DeFi, NFTs, and gaming.

Challenges#

Token Economic Controversy: Concerns about centralization due to the founding team controlling a large number of tokens.
Intense Competition: Fierce competition with high-performance public chains like Aptos and Solana.
Ecosystem Maturity: Compared to mature chains like Ethereum, the ecosystem still needs time to develop.
Regulatory Risks: Emerging public chains face potential regulatory uncertainties.

DApp Ecosystem#

As of 2024, the Sui network has developed nearly 200 DApps covering multiple fields such as DeFi, NFTs, and gaming. These applications not only showcase the technical potential of the Sui public chain but also provide users with a rich variety of services.

Major DApp Projects#

DeepBook:
- DeepBook is one of the most popular decentralized trading platforms on Sui, offering a centralized limit order book (CLOB) with the highest trading volume. The platform not only provides liquidity for users but also offers public services for other protocols.
Suilend:
- Suilend is a lending protocol where users can borrow or lend digital assets and earn returns through interest. It also features decentralized exchange (DEX) capabilities.
FanTV:
- FanTV is a social media platform that allows content creators to earn revenue by uploading videos and interacting with audiences. This model has attracted a large number of creators.
Wave Wallet:
- Wave was initially launched as a crypto wallet but has now expanded to include more features, exploring various yield opportunities within the Sui ecosystem.
Clutchy:
- Clutchy is a platform focused on the NFT market for gaming assets, providing users with trading services for digital artworks and in-game items.

Market Performance and Growth Potential#

In 2024, the Sui public chain demonstrated strong growth, with its total locked value (TVL) soaring from less than $250 million to $1.75 billion. At the same time, its daily active user count significantly increased from 19,758 to 843,450.
The Sui network has become a competitor in the Web3 space due to its low transaction fees and fast response capabilities, creating a favorable environment for developers.

Conclusion#

As a next-generation blockchain platform, Sui occupies an important position in the competitive Layer 1 space, thanks to its innovative technical architecture and rapidly developing ecosystem. The Move programming language and object-centric model provide it with unique technical advantages, particularly in applications such as gaming and NFTs.

Despite facing challenges such as token economic controversies and intense competition, Sui's technological innovations and ecosystem development momentum are still worth paying attention to. For investors, Sui represents an important direction for the development of blockchain technology, but it is essential to fully consider its risk factors, especially regarding token unlock pressure and market competition risks.

In the long run, Sui has the potential to become an important part of Web3 infrastructure, but its ultimate success will depend on the continued maintenance of its technical advantages, the healthy development of its ecosystem, and the breadth and depth of market adoption.

References:

Sui official documentation and whitepaper
Mysten Labs technical blog
CoinCentral blockchain analysis
Cointelegraph technical report
DeFiLlama TVL data
Market data from major exchanges