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SUI Surges: $310 Million Ethereum Bridge Fuels TVL Takeover

Last Updated February 19, 2024 11:41 AM
Teuta Franjkovic
Last Updated February 19, 2024 11:41 AM

Peop Key Takeaways

  • SUI TVL surpassed $593M, exceeding established competitors like Cardano, thanks to Ethereum bridge inflows.
  • The L1 platform bounced back from early hurdles, fueled by inscription activity and developer interest.
  • High traffic, low gas fees, and strong security attract investors are pushing SUI token price up 131% YTD.

The Layer 1 blockchain platform Sui has witnessed a surge in inflows over the past month. This  uptick has propelled it ahead of such established competitors as Cardano (ADA), NEAR, and Aptos (APT) in total value locked (TVL).

This influx of investments and activity on the network underscores its growing appeal and potential in the blockchain space. Not only has it attracte more developers and projects but it has also secured a larger share of the market’s liquidity.

Sui TVL Surges, Fueled by Ethereum Bridge Inflows

The leap in TVL is a key indicator of Sui’s rising prominence and trust among users and investors. The rise highlights its abilities and performance relative to other well-known blockchain platforms.

SUI blockchain
Credit: DeFiLama

The network, developed by ex-Meta staff, has seen its total value locked (TVL) in decentralized finance (DeFi) protocols exceed $593 million, according to DefiLlama . This represents a more than twofold increase from its year-start figure of $211 million. Data from wormholescan.io  further underlines the growth. The site’s figures reveal that $310 million moved from Sui from Ethereum via the cross-chain bridge Wormhole within the last 30 days.

People often compare Sui and Aptos. This is because both blockchain platforms are engineered using Move, a programming language initially created for Meta’s Diem blockchain project. This shared foundation underlines the technological kinship between the blockchains, highlighting their potential for efficiency and security in blockchain applications.

Overcoming Early Hurdles with Surge in Inscription Activity

After making its debut on Binance’s launchpad in May last year, Sui faced initial challenges. Its native token, SUI, plummeted by 68% during its first five months on the market. The situation reached a critical point  in October when allegations surfaced against Sui founders, accusing them of manipulating the token supply, a claim they denied.

Despite these early setbacks, Sui managed to regain momentum and stability through a significant increase in inscription-related activities . Inscriptions, which gained popularity on Bitcoin during its recent NFT expansion, allow for the recording of arbitrary data on the blockchain without the need for smart contracts. This feature contributed to Sui’s recovery and growing interest among users and developers. In turn, this marked a turning point for the blockchain platform.

Record Performance and Cost Efficiency Amid High Traffic

On December 22, Sui achieved a milestone by generating 13.8 million blocks , with it reaching 6,000 transactions per second (TPS). This performance stands in stark contrast to other blockchains like Ethereum (ETH), where high traffic typically leads to increased gas fees. Instead, Sui  saw a decrease in gas prices during this period of intense activity.

The Sui network is currently supported by 106 validators operating 413 nodes, ensuring robust security for the blockchain. This infrastructure and Sui’s current low transaction costs even under heavy load have boosted the confidence of both developers and investors. Recently, there has been a noticeable uptick in the SUI price and the total value locked (TVL) on the blockchain.

The two leading protocols on Sui, Scallop Lend and Navi Protocol—both lending platforms—have experienced a fourfold increase in TVL since the beginning of the year. The SUI token has seen a substantial price increase , trading at $1.81 at the time of writing (February 19 2024).

It does, however, remain to be seen whether SUI can maintain its momentum.

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