Introduction

In the rapidly evolving blockchain space, the SUI public chain stands out with its unique technological advantages and burgeoning ecosystem. As a new generation high-performance public chain, SUI is not only attracting the attention of numerous developers and investors but is also increasingly prominent in the cryptocurrency market. This article will delve into SUI's technological features, ecosystem development, and future prospects, providing readers with a comprehensive research report on the SUI public chain.

Recent Positive News for SUI

Grayscale Launches SUI Trust Product

On August 7, the well-known cryptocurrency investment company Grayscale announced the launch of two new crypto investment products, including a trust product for SUI tokens. This decision marks mainstream financial institutions' recognition of SUI and helps enhance SUI's credibility among professional investors. The announcement led to a 42% surge in SUI's price on August 8, marking the highest single-day increase in recent times.

SUI Large Token Unlock

On August 1, Sui (SUI) unlocked approximately 64.19 million tokens, about 2.56% of the current circulating supply, valued at around $50.60 million. Following the unlock, SUI's price experienced a brief decline, consistent with the common trend after large token unlocks. However, SUI's price then saw a robust rebound, nearly doubling. This quick rebound indicates investors' optimistic outlook on SUI's long-term prospects, suggesting that most of the unlocked tokens were not sold off but held for the long term. SUI's strong market resilience in the face of large token unlocks reflects confidence in its fundamentals.

Other Recent Significant Collaborations or Developments

On August 9, Sui's ecological domain service, SuiNS, announced a restructuring into a decentralized protocol, allowing users to govern through the NS token and planning to airdrop 10% of the tokens to the community.
On August 13, CoinList launched a staking fund supporting five crypto assets, including ETH, SOL, NEAR, SUI, and MINA.
Several key opinion leaders (KOLs) are bullish on SUI, including Real Vision founder and CEO Raoul Pal and Mechanism Capital co-founder Andrew Kang.

Comparison of SUI with Other Move-based Public Chains

Recent positive news for SUI often triggers short-term market attention. Understanding its technological architecture and positioning among Move-based public chains will help in a comprehensive evaluation of its long-term potential. The following section compares the Move-based public chain representatives SUI, Aptos, and Movement from multiple perspectives.

Technological Architecture Differences

Object Storage Model:

SUI: Utilizes a unique object storage model, storing all data as independent objects, each with a unique identifier.
Aptos: Uses a more traditional account model.
Movement: Supports both Aptos's account types and will soon support SUI's account types.

Parallel Execution Mechanism:

SUI: Achieves parallel execution through object storage and causal ordering.
Aptos: Employs Block-STM parallel execution engine, eliminating the need to predeclare data dependencies.
Movement: Uses M2 architecture inherited from Diem's Block-STM parallel functionality for efficient parallel processing.

Consensus Mechanism:

SUI: Implements DPoS via DAG-based Byzantine Fault Tolerance with Narwhal and Bullshark (Tusk).
Aptos: Uses AptosBFT consensus mechanism to optimize synchronization among validators for throughput and reduced latency.
Movement: M1 network employs Snowman consensus mechanism, derived from Avalanche, ensuring high throughput and efficient transaction ordering.

Programming Language and Compatibility:

SUI: Builds on the standard Move language, enhancing throughput, reducing finality delays, and making Move programming more practical.
Aptos: Also uses Move language but focuses on enhancing existing Move language functionalities.
Movement: Achieves compatibility with Sui Move, Aptos Move, and EVM through MoveVM, allowing cross-chain deployment.

Performance and Scalability Comparison

Transaction Processing Speed:

SUI: Capable of processing over 100,000 transactions per second.
Aptos: Theoretically capable of over 100,000 TPS.
Movement: M2 architecture can achieve tens of thousands TPS when running on Ethereum.

Scalability:

SUI: Focuses on its own public chain design.
Aptos: Focuses on its own public chain design.
Movement: Utilizes a modular design, with M1 handling consensus and transaction ordering, and M2 handling transaction execution, providing flexible scalability.

Cross-Chain Interoperability

SUI: Primarily focuses on its own ecosystem development.
Aptos: Also mainly focuses on its own ecosystem.
Movement: Implements cross-chain interoperability with Ethereum ecosystem via Movement SDK, and compatibility with Sui and Aptos ecosystems is one of its significant advantages.

Developer Friendliness

SUI: Offers comprehensive development tools and documentation.
Aptos: Also provides abundant development resources.
Movement: Implements Fractal tools to convert Solidity to Move, significantly lowering the entry barrier for Ethereum developers.

Application Scenarios and Ecosystem Focus

SUI: Focuses particularly on gaming applications, with its object storage model well-suited for complex asset relations in games. Actively collaborates with Korean gaming giants and Web2 companies like TikTok to advance blockchain gaming and SocialFi projects.
Aptos: Currently working with Microsoft to incorporate AI technology into blockchain, such as the Aptos Assistant.
Movement: As an emerging public chain, it is actively building its ecosystem, primarily focusing on infrastructure and multi-chain financial applications.

Overall, Movement's key feature as a new Move-based public chain is its compatibility with multiple Move versions and EVM, providing a unique advantage in cross-chain interoperability and developer attraction. SUI and Aptos each have their own strengths in performance optimization and ecosystem development. All three are advancing the Move language, but with different technological approaches and market strategies.

SUI Ecosystem Overview

Key Data Indicators (Total Locked Value, Daily Active Users, etc.)

In Q1 2024, Sui's TVL growth and price showed a strong positive linear correlation. Despite significant price drops in Q2 and Q3, Sui's overall TVL remained relatively high, indicating overall health.

Since May 2024, on-chain transaction volumes have surged, with active addresses significantly increasing in May and June. Although there was a substantial decline in Q3, the activity level remained above the average level of January to April.

Ecosystem Growth Trend

Made By:CoinEX Research

Main Application Categories

As of the publication of this article, SUI’s official website discloses 86 projects within its ecosystem, including 16 DeFi projects, 23 GameFi projects, 15 NFT projects, and 8 SocialFi projects.

Key Projects in the SUI Ecosystem

DeFi Leading Project - NAVI

NAVI, the leading DeFi project in the SUI ecosystem, currently boasts a TVL (Total Value Locked) of $245 million and a total borrowing volume of $58 million. With a 25% adoption rate, it offers lending users an 8.3% return in SUI, while returns on stablecoins USDC and USDT are 15% and 13%, respectively, and WETH yields a 8.5% return. What advantages has NAVI leveraged to become the DeFi leader in the SUI ecosystem?

Data Source: NAVI official website

First, in terms of liquidation design, NAVI provides customization and versatility. It offers customizable and scalable interest rate curves, supported by flexible asset backing from Sui Oracle partners and TWAP oracles, enabling smooth liquidations through DeepBook and AMM integration. Additionally, NAVI pioneered leveraged positions through automated leverage vaults, allowing users to borrow lower APR assets and enjoy amplified farming rewards from collateralized tokens. It also creates leverage strategies tailored for assets with native APY, such as liquid staking assets and LP tokens.

NAVI’s risk control includes isolated markets for new assets and specified debt ceilings. NAVI also supports various tokens, including CETUS (Sui’s leading DEX), vSUI (LSD protocol Volo’s SUI LSD token), and haSUI (LSD protocol Haedal’s SUI LSD token).

Strategically, NAVI received $2 million in funding from well-known investment institutions such as ViaBTC and OKX Ventures on January 31 this year. NAVI has also launched its own ecosystem token NAVX, with a market cap of $4.2 million and a fully diluted market value (FDV) of $57 million as of August 16, 2024. Relying on its native token to continuously empower the protocol, if NAVI maintains stable growth and user stickiness, it is believed that it will make an even bigger impact as SUI rises.

GameFi Innovative Work — Blockus

After evaluating numerous GameFi projects on SUI, this article has selected an outstanding project. Blockus is a complete Web 2.5 in-game economy platform. It provides a seamless experience, allowing players to join effortlessly without worrying about wallet management, fiat currency onboarding, and asset liquidity issues, while enabling game studios to easily add rich web3 features. Using Blockus, NFTs can be gradually integrated while controlling the player experience, allowing them to log in or play games with wallets, even without realizing they are interacting with wallets. Whether building for Web, mobile, desktop, or cross-platform, seamless integration solutions are provided. Gas-free transactions eliminate the concept of gas by using built-in relayers or account abstraction wallets, simplifying the player experience. Here are some examples:

Gradually transform players' in-game items and characters into more powerful NFT items and characters.

Allow NFTs themselves to own other NFTs and assets.

Use NFTs to gate special content, rewarding early supporters and elite players.

On-chain provable loot boxes can enhance confidence in randomness.

Use NFTs as entry tickets for tournaments and securely distribute prizes using smart contracts.

Launch NFT collections on different chains and bring them all into the game.

Furthermore, Blockus has made good attempts in terms of compliance. It provides guideline compliance onboarding training for game studios, including location-based KYC and invisible AML and sanctions compliance, ensuring adherence to global regulations without affecting the player experience. It allows users to log in using familiar methods or bring their own wallets. Comprehensive coverage of Europe, North America, Latin America, Southeast Asia, supporting 173 countries, safely minting developers' game-bound achievement tokens and in-game assets. Use the Blockus platform to create, manage, and grow NFTs and other tokens, enhancing player engagement through tokenization and providing new revenue opportunities.

In terms of developer-created games, it simultaneously has Web2 and Web3 login methods:

Game-centric login methods - Discord, Twitch, Epic login

Use built-in authentication or bring your own authentication

Smooth integration with popular game backend platforms, including Epic Online Services and Microsoft Playfab

Currently, Blockus has completed a $4 million seed round of financing, which continues to provide more momentum for product improvement and expansion with the support and promotion of seed funding.

NFT Market Highlight Project——BlueMove

BlueMove is a standout NFT project in the SUI ecosystem, a community-first NFT marketplace for Move language blockchains, with a protocol design that actively rewards participating traders, collectors, and creators. Compared to other mainstream NFT marketplaces, it has several advantages:

Supports NFT staking
Tracks and traces mint information
NFT lending
NFT order matching
Currently integrates with up to 9 wallets

Chart source: BlueMove White paper

BlueMove has launched its native token MOVE, which can be used for free minting/whitelist minting, staking, and boosting. Users who buy or sell any NFTs on BlueMove can earn MOVE tokens. Creators get paid immediately and also receive royalties when sold.

Through user incentive schemes and convenient product design, BlueMove has secured a place in the NFT market of the SUI ecosystem. However, SUI's current NFT market is still in a multi-strong parallel pattern, and it remains to be seen who will ultimately become the NFT leader.

Conclusion

SUI’s Competitive Advantages in the Public Chain Arena

There is no doubt that SUI has emerged as a star public chain project in this cycle, showcasing unique competitive advantages in one of the most competitive sectors.

SUI’s core strengths can be summarized as follows:

Parallel Transaction Processing: SUI's architecture allows for parallel transaction processing, differing from the traditional sequential processing of transactions. This capability significantly enhances transaction speed and reduces the risk of network congestion, maintaining efficiency even during high-demand periods.

Horizontal Scalability: The network’s capacity scales with the number of validators. More validators result in higher throughput, ensuring that transaction fees remain low and stable even with increased network activity.

Advanced Consensus Mechanism: SUI uses an optimized Proof-of-Stake (PoS) consensus mechanism combined with the Narwhal and Bullshark protocols. Narwhal ensures rapid availability of transaction data, while Bullshark efficiently sorts this data, improving the network’s security and speed.

Object-Oriented Storage Model: The object-based storage system, unlike traditional account models, provides greater flexibility for complex smart contract functionalities, particularly suitable for applications like gaming and NFTs that require intricate interactions.

Security and Flexibility: The use of auditable smart contracts and the Sui Move programming language, specifically designed for blockchain development, minimizes common security vulnerabilities. Coupled with the network’s scalability, SUI is an ideal platform for developing decentralized applications.

Future Development Prospects for SUI

Based on the aforementioned points, SUI is clearly one of the most attention-grabbing Layer 1 blockchain projects of the current cycle. The future of SUI is expected to be highlighted by several aspects:

Technological Innovation and Performance Improvement: SUI is continually upgrading its performance, with recent collaborations, such as with Mysticeti, aiming to significantly reduce blockchain latency. As SUI rolls out Mysticeti, it aims to set new performance standards for blockchain technology, potentially driving further development and attracting more developers and users.

Market Confidence and Investor Interest: SUI demonstrates strong market performance, with holders showing robust confidence despite substantial token unlocks. Additionally, significant off-chain (OTC) buy orders indicate potential strategic interest from institutional investors, providing a solid foundation for future growth. The introduction of SUI trust products by Grayscale also offers long-term support for SUI’s price base.

Community and Ecosystem Expansion: SUI’s developers are actively building excellent projects to expand the SUI ecosystem. This pragmatic development approach is likely to attract more users and partners in the future, further enhancing SUI’s position in the blockchain industry.

With multiple positive factors in play, SUI, often referred to as the "SOL killer," has achieved notable progress and results. However, there remains a significant gap in challenging SOL’s position, and SUI still has a long way to go in expanding its ecosystem and user base to attract more capital and market participation.

The Rise of the SUI Public Chain: Thriving Ecosystem and Technological Innovation