• Sui's ability to stand out in Layer1 is inseparable from its underlying innovative technology. Firstly, Sui adopts a unique parallel execution architecture, combining the Narwhal consensus protocol with Tusk's asynchronous transaction ordering technology; secondly, Sui has innovated on the Move language, forming a distinctive Sui Move language. Sui Move features low latency, low cost, and stronger scalability, making it more capable of achieving large-scale adoption in Web3; finally, Sui's consensus mechanism is based on the combination of Narwhal and Tusk, focusing on optimizing the transaction ordering and block confirmation processes, greatly improving the system's throughput and processing speed.

• From on-chain data, Sui's ecosystem TVL has surpassed $1.5 billion, ranking in the top 10 of public chains. The total number of active accounts on Sui has exceeded 45 million, with a daily active peak of nearly 2.5 million. The total number of transactions on Sui has surpassed 8.4 billion, with a peak daily transaction count of 300 million. There are a total of 109 validator nodes on the Sui network, with an average staking APY of 2.56% and a total staking amount of 7.72 billion SUI.

• In Sui's token economy, the amount to be unlocked is 5.22 billion, accounting for 52.17% of the total supply. Regarding the potential sell pressure risk from the continuously unlocking tokens, the Sui Foundation's answer is that Sui will allocate tokens for ecosystem development, such as community growth, during each unlocking event.

• Since 2024, Sui has made significant progress in DeFi, Meme, infrastructure, GameFi, and NFT directions. This report will analyze representative projects in each direction.

• In the DeFi direction, representative projects include NAVI Protocol, Cetus, and Bluefin. NAVI Protocol is the earliest native one-stop liquidity protocol in the Sui ecosystem, with total protocol revenue exceeding $9 million since 2024; Cetus is the largest DEX in the Sui ecosystem, accounting for 65% of Sui's total trading volume. The development of Memes in the Sui ecosystem and the integration of the native stablecoin USDC have further stimulated the increase in Cetus's trading volume; Bluefin is the only perpetual contract provider in the Sui ecosystem, with Bluefin contract trading occupying over 85% of the market share in the Sui ecosystem. Bluefin has become a comprehensive platform that integrates aggregators, liquidity pools, and contracts, aiming to be a one-stop on-chain exchange, and it is also the third-largest revenue protocol on the Sui chain.

• In the Meme direction, the specific representatives are AAA, HIPPO, and LOFI. AAA is a cat-themed Meme in the Sui ecosystem, primarily supported by Sui developer @SuiDeveloper. AAA's market cap has currently fallen to around $3 million; HIPPO, known as the hippo on the Sui chain, was once a popular Meme on the Sui chain. Its market cap peaked at nearly $300 million, surpassing Solana's MOODENG, and has now fallen to $50 million; LOFI's main narrative theme is global warming, with a strong community cohesion that emphasizes collective collaboration and progress, encouraging community members to contribute to the ecosystem.

• In the infrastructure direction, representative projects include Pyth Network, Wormhole, the native cross-chain bridge Sui Bridge, and stablecoins (native USDC, USDY, AUSD, and FDUSD). In addition to well-known third-party projects like Pyth Network and Wormhole, Sui is also actively solidifying its native infrastructure. Especially in the direction of stablecoins, since 2024, Sui has supported four types of stablecoins, further promoting Sui's development in DeFi and other areas.

• GameFi is also one of the key areas that Sui is focusing on. In 2024, Sui launched the SuiPlay0X1 handheld gaming device, providing more possibilities for connecting real gamers. In the GameFi direction, representative projects include BIRDS, Wave Wallet, and Aylab. Compared to other AAA GameFi projects, Sui's current GameFi projects are more lightweight, but further enhancements are needed in terms of game playability. At the same time, Sui is actively promoting cooperation with Google Cloud and improving gaming infrastructure, which is expected to bring new perspectives to GameFi.

• In the NFT direction, Sui still needs to make further efforts in the NFT trading market. Previously, the leading NFT trading market on Sui, hyperspace.sui, closed on September 17, 2024, and other NFT trading markets are also actively seeking more development routes.

• Sui achieved remarkable results in 2024, attracting top VCs such as VanEck, Franklin Templeton, and Grayscale. As a newly emerging public chain, Sui still has a certain market gap compared to leading public chains, but this also presents an opportunity for Sui. Future areas for Sui to further explore include but are not limited to RWA tracks, DeFi tracks, and GameFi tracks. However, during its rapid development, Sui should pay attention to issues such as network security and balance the needs of developers and users to promote the healthy and long-term development of the ecosystem.

Since 2024, Sui has achieved outstanding results among public chains. The token SUI has risen from $0.84 to a peak of nearly $5, an increase of over 400%. As of the time of writing, Sui's total DeFi TVL has surpassed $1.5 billion, ranking ninth among public chains. In addition, Sui has been selected for the Grayscale fund and has established a partnership with Ant Group. From a little-known public chain with a market cap of a few million dollars to now a well-known Layer1 dark horse, how did Sui manage to rise against the odds? We will continue to explore this in the following discussion.

1. Sui's Innovations and Progress

1. Technological Innovation

Sui's ability to stand out in Layer1 is inseparable from its underlying innovative technology. This report will focus on three key aspects: its parallel execution architecture, Sui Move language, and innovative consensus mechanism.

• Parallel Execution Architecture: Sui adopts a unique parallel execution architecture, combining the Narwhal consensus protocol with Tusk's asynchronous transaction ordering technology. This allows Sui to achieve high levels of parallelism in transaction processing, solving the serial bottleneck of traditional blockchains. Traditional blockchain serial execution architectures typically define state as a set of accounts, while Sui employs a unique design that views state as a set of independent objects, each with a unique ID. This design allows operations between different objects to be more independent and clear, making it easier to achieve parallel processing. Sui's parallel architecture ensures that different applications and use cases in DeFi can execute independently.

• Sui Move Language: Sui adopts the Move programming language developed by Facebook, aimed at improving the execution efficiency and security of smart contracts. Compared to other mainstream blockchain languages such as Solidity (Ethereum) and WASM (Solana), the Move language excels in modularity and composability, and has a strong resource-oriented nature. Sui has innovated on the Move language, forming a distinctive Sui Move language. Sui Move features low latency, low cost, and stronger scalability, making it more capable of achieving large-scale adoption in Web3.

• Innovative Consensus Mechanism with Low Latency and High Throughput: Sui's consensus mechanism is based on the combination of Narwhal and Tusk, focusing on optimizing the transaction ordering and block confirmation processes, greatly improving the system's throughput and processing speed. This mechanism ensures that transactions are confirmed within seconds, which is especially important for financial, gaming, and cross-chain application scenarios that require rapid responses.

2. On-Chain Data

Sui's mainnet was launched on May 3, 2023, and with the launch of the mainnet, the Sui ecosystem has experienced explosive growth. The following sections will mainly analyze some achievements made since the launch of the Sui mainnet based on on-chain data.

TVL Data: TVL is an important indicator for measuring the development of the DeFi ecosystem. A higher TVL means stronger liquidity available on the network and a deeper and broader range of DeFi services. According to DefiLlama, Sui's ecosystem TVL has exceeded $1.5 billion, ranking in the top 10 of public chains.

Total Active Accounts: As of the time of writing, the total number of active accounts on Sui has surpassed 45 million, with a daily active peak of nearly 2.5 million. Active addresses reflect the user stickiness of the public chain, and Sui's rapidly growing active accounts indicate a solid user base.

Daily Transaction Volume: As of the time of writing, the total number of transactions on Sui has surpassed 8.4 billion, with a peak daily transaction count of 300 million. From the perspective of daily transaction volume, Sui ecosystem users are highly active. Additionally, with the breakthrough in transaction counts, the revenue-generating capability of the Sui public chain is continuously strengthening, and the improvement in the public chain's self-sustaining ability will also feed back into the ecosystem, forming a positive cycle of growth.

TPS: TPS represents the number of transactions that a cryptocurrency network can process per second. As of the time of writing, Sui's peak speed in the past 30 days has been 914 TPS.

Validator Nodes: Sui network's validator nodes are full nodes that store the blockchain's state and transaction history completely and participate in the consensus protocol to validate and add new transactions. These validator nodes play a key role in the network, ensuring the validity of transactions and the security of the network. As of the time of writing, there are a total of 109 validator nodes on the Sui network, with an average staking APY of 2.56% and a total staking amount of 7.72 billion SUI.

Since the launch of the Sui network mainnet, the network has also undergone continuous upgrades, significantly enhancing its performance and functionality. In August 2024, Sui deployed a new consensus mechanism, Mysticeti, reducing consensus latency to about 390 milliseconds and improving transaction processing speed. In October 2024, Sui Bridge went live on the mainnet, enabling ETH and WETH transfers between Sui and Ethereum, enhancing cross-chain interoperability. Additionally, by the end of 2024, the Sui mainnet has been upgraded to V1.39.4, with the protocol version raised to the 70th version, further optimizing network functionality. These upgrades reflect Sui's ongoing progress in performance optimization, functional expansion, and cross-chain interoperability.

3. Token Economy

The long-term circulating supply of the SUI token is 10 billion, with approximately 5% of the tokens in circulation at the launch of the mainnet. The remaining tokens will be released according to the proposed schedule, with all tokens expected to be fully released by April 2030. The main functions of the token include transaction gas fees, on-chain governance, and participation in the ecosystem.

In terms of token distribution, 50% of the tokens are allocated to the community managed by the foundation; 20% are allocated to early contributors; 14% are allocated to investors, and 10% are allocated to the Mysten Labs treasury; 6% are allocated to community access programs and application testers.

Regarding token unlocking, according to Tokenomist data, as of the time of writing, the total locked amount of SUI is 1.71 billion, accounting for approximately 17.14% of the total supply; the amount to be unlocked is 5.22 billion, accounting for 52.17% of the total supply. A significant community concern regarding token unlocking is that over 50% of Sui's tokens are still locked. Will the continuously unlocking tokens pose a sell pressure risk in the future? In response, the Sui Foundation stated that during each token unlocking, Sui will allocate tokens for ecosystem development, such as community growth, thus there is no risk of sell pressure.

The next unlocking date is set for March 1, 2025, with a total unlocking amount of 40.63 million, accounting for 1.31% of the total circulating amount. In this unlocking, the community allocation accounts for 0.41%, while early contributors account for 0.33%.

It is worth noting that Sui's token economy also features a unique "storage fund" mechanism. The logic of this mechanism primarily operates by subsidizing the later storage and operational costs through the gas fees paid by early users. This token solution mechanism balances the interests of both early and later users, benefiting the sustainable development of the Sui ecosystem.

4. Recent Focus

Sui's significant achievements in 2024 have been recognized by top VCs, who have begun to invest in Sui, including VanEck, Franklin Templeton, and Grayscale. This report uses Grayscale SUI Trust as an example to observe the performance of this asset. As of the time of writing, Grayscale SUI Trust has a net asset value of $51.65 per share, managing over $10 million in assets. Since its launch in August 2024, the net asset value of Grayscale SUI Trust has increased by approximately 500%.

In December 2024, Sui announced a partnership with Ant Group and its Web3 technology brand ZAN, aiming to tokenize ESG-supported real-world assets (RWA) on Sui in the future. Additionally, this collaboration will integrate assets held by global technology and solar material manufacturers into the Web3 ecosystem.

Furthermore, Sui is also making continuous progress in its ecological layout. To better support ecosystem development, Sui is constantly enriching the ecosystem's stablecoins and expanding the infrastructure of the public chain. Recently, Sui has integrated Phantom and Backpack, which will further enhance user accessibility.

II. Overview of Sui Ecosystem Projects

According to Sui's official website, there are currently nearly 90 ecosystem projects, covering various directions such as DeFi, Meme, and GameFi. This report will mainly discuss key projects in the areas of DeFi, Meme, infrastructure, GameFi, and NFT.

1. DeFi

According to DefiLlama data, as of the time of writing, Sui's DeFi TVL has surpassed $1.5 billion, but only accounts for 1.37% of the total DeFi TVL. Compared to leading DeFi public chain Ethereum, Sui still has significant room for development in the DeFi field.

In the Sui DeFi ecosystem, the top three projects by TVL are Suilend Protocol, with a TVL of $500 million; NAVI Protocol, with a TVL of $400 million; and Cetus, with a TVL of $170 million. The top three projects by daily revenue are Cetus, with a daily revenue of $44,000; Suilend Protocol, with a daily revenue of $25,400; and Bluefin, with a daily revenue of $24,800. Below, we will discuss the key projects in detail.

1.1 NAVI Protocol

1. Core Mechanism

NAVI Protocol is a leading DeFi project on Sui, aiming to become the AAVE of the Sui ecosystem. NAVI Protocol's main business includes lending and liquidity collateral, while also providing flash loans and basic lending services, offering one-click leveraged lending services to advanced and whitelisted users. NAVI Protocol is committed to building a decentralized integrated staking lending and liquidity market, providing users with convenient on-chain borrowing and lending services. Its core mechanisms include:

• NAVI Lending: The lending function is one of the core features of NAVI Protocol and an indispensable part of DeFi projects. The total scale of NAVI lending is $530 million, with SUI and USDC being the most borrowed assets according to the asset table.

• Volo LST: Volo LST is a liquid staking platform acquired by NAVI Protocol in January 2024. This is a key step for NAVI Protocol to transform from a pure lending platform to a one-stop liquidity protocol. After the upgrade, NAVI Protocol will focus on developing an integrated solution to better meet users' changing needs and is expected to explore new perspectives in LSTFi.

• NAVI Dex Aggregator: The NAVI [Protocol proposed NAVI.ag](http://Protocol proposed NAVI.ag) is a representative DEX aggregator in the Sui ecosystem, simplifying the user interface and providing a better user experience.

2. Major Innovations

NAVI Protocol leverages Sui's high-performance characteristics to provide an efficient and convenient DeFi experience. NAVI Protocol helps users achieve greater returns with minimal risk through three main innovations: leverage vaults, isolation mode, and health factor (Hf).

• Leverage Vaults: Enables automated leverage, native APY asset leverage strategies, low annual interest rate asset lending, and high mining returns.

• Isolation Mode: Only assets approved by NAVI governance can be collateralized, which eliminates systemic risk.

• Health Factor (Hf): NAVI introduces a health factor (Hf), where the value of the health factor is positively correlated with safety; the higher the value, the higher the safety level. Additionally, to prevent users from being liquidated without their knowledge, NAVI has partnered with Notifi, allowing users to receive real-time health factor updates via email, TG, and Discord.

3. Revenue Sources

NAVI Protocol's main revenue sources include:

• Lending Interest: One of the main sources of income for NAVI Protocol is lending interest. On the platform, borrowers must pay a certain interest, while users who stake assets can earn from it.

• Transaction Fees: NAVI Protocol supports DEX and liquidity pools; after users provide liquidity, the protocol extracts a certain percentage of transaction and fund pool fees as income.

• Platform Service Fees: For some additional services, such as asset management and transaction aggregation, NAVI charges platform service fees.

4. Token Economy

The total supply of NAVI Protocol tokens is 1 billion, with the main functions of the tokens being staking, fee discounts (the more staked, the greater the discount), and participation in ecosystem governance.

Additionally, to better utilize the native token's practicality, NAVI Protocol has introduced veNAVI. Users who stake the native token will receive veNAVI tokens; the more tokens staked and the longer the staking period, the more veNAVI tokens received. The voting power of veNAVI tokens will influence the incentive distribution of LP pools; the more veNAVI tokens in the liquidity pool, the higher the asset distribution.

5. Financing Situation

NAVI Protocol completed a $2 million financing round in January 2024, with investors including Hashed, Mechanism Capital, Nomad Capital, Sui, Mysten Labs, Comma3 Ventures, and Coin98 Finance.

6. Business Data

According to official data, NAVI Protocol's TVL peaked at $750 million, with over 900,000 unique users, completing a total of 7.45 million transactions, with total deposits exceeding $27.9 billion and total loans reaching $17.6 billion. Since 2024, the total revenue of the protocol has exceeded $9 million, with cumulative profits reaching $1.79 million. It has now integrated over 21 wallets, with 17 liquidity pools primarily distributed across stablecoins, BTCFi, and Sui native DeFi assets.

Additionally, NAVI Protocol has partnered with leading RWA project Ondo to introduce USDY as collateral into NAVI and is continuously exploring possibilities in the RWA field. Overall, NAVI Protocol, as the earliest native one-stop liquidity protocol in the Sui ecosystem, has established a certain user base.

1.2 Cetus

1. Core Mechanism

Cetus is a DeFi protocol based on blockchain technology, built on Sui and Aptos, focusing on providing users with decentralized trading and liquidity pool (LP) services. Its core mechanisms include:

• Swap: Cetus supports interoperability between Sui and Aptos chains, enabling free asset flow across multiple chains.

• Liquidity Pool: Cetus's liquidity pool allows users to deposit cryptocurrency assets, earning platform tokens as rewards as liquidity providers, ensuring the stability of the liquidity pool and the liquidity of funds through incentive mechanisms.

• Concentrated Liquidity Market Making: Concentrated liquidity is allocated within a specified price range; Cetus's concentrated liquidity market maker (CLMM) is similar to Uniswap V3's concentrated liquidity market-making algorithm, allowing liquidity providers to contribute their liquidity within their custom price ranges to implement custom strategies.

• Permissionless: All major tools and features on Cetus are essentially built on permissionless standards, allowing users or other applications to utilize its protocol for their own use cases at any time.

• Programmable: Cetus is built on CLMM, creating a highly customizable liquidity protocol. By flexibly combining swaps, range orders, and limit orders, users can implement almost any complex trading strategy that can be achieved on CEX.

• Composability: Adhering to the concept of "liquidity as a service," Cetus places great emphasis on the convenience of integration when building products. Developers and applications can easily access liquidity on Cetus to build their own products.

3. Revenue Sources

Cetus's main revenue sources are trading fees and liquidity management fees. A certain percentage (default 20%) of the trading fees from each transaction on Cetus will be allocated as protocol fees to support the sustainable development of the project. Notably, according to DefiLlama data, Cetus has the highest daily fees in the Sui ecosystem, amounting to $220,278; at the same time, Cetus is also the top protocol in the Sui ecosystem by daily revenue, with a daily income of $44,056.

4. Token Economy

The total supply of the Cetus token is 1 billion, with 50% allocated to the community and LPs, 20% to the team and advisors, 15% to investors, and 15% to the liquidity treasury. The main function of the token is to provide economic incentives to encourage users to participate in ecosystem building, including community governance. It is worth noting that as of the time of writing, all private placement tokens of Cetus have been unlocked, meaning there will not be a large sell pressure risk in the future.

At the same time, Cetus adopts a dual-token economic model with CETUS and xCETUS to stimulate ecosystem development, as follows:

• CETUS can be converted to xCETUS at a 1:1 ratio at any time; the conversion ratio from xCETUS to CETUS varies between 1:0.5 and 1:1 depending on the lock-up period.

• The more xCETUS holders have, the more voting power, more Launchpool purchase limits, and rewards from liquidity mining they can obtain.

Additionally, the official has various empowerment measures for the Cetus token CETUS, such as allowing users to lock their tokens in the protocol to earn interest, or participate in LP to provide liquidity and earn returns. Users who actively participate in the Cetus ecosystem will receive good returns, creating a virtuous cycle of development within the Cetus ecosystem.

5. Financing Situation

Since 2023, Cetus has completed two rounds of financing. The specific financing amounts have not been disclosed, with investment institutions including NGC Ventures, Animoca Brands, IDG Capital, AC Capital, and others.

6. Business Data

The DEX trading volume on Sui reached a total of $42 billion in 2024, with Cetus accounting for 65% of the total trading volume on Sui. This is mainly attributed to two factors: first, the development of Memes in the Sui ecosystem, as most mainstream Memes on Sui have launched on Cetus. With the rise of the Sui Meme craze, more funds and traffic have flowed into Cetus, further driving its overall trading volume; second, Cetus supports the native stablecoin USDC, which is the cornerstone of DeFi development. The integration of native USDC has played a key role in promoting the development of Cetus DeFi.

As of the time of writing, Cetus's DeFi TVL is $166 million, accounting for about 11% of Sui's total TVL, with a trading volume of $140 million in the past 24 hours. Currently, there are about 20,000 liquidity pools, with the main TVL concentrated in USDT-USDC. Overall, Cetus plays a key role in the Sui ecosystem and is a leading DEX with significant room for future development.

1.3 Bluefin

Bluefin is currently the only perpetual contract provider in the Sui ecosystem, with Bluefin contracts accounting for over 85% of the market share in the Sui ecosystem. The Bluefin ecosystem has now integrated an aggregator, liquidity pool, and contracts into a comprehensive platform, combining narratives from Meme and RWA, aiming to become a one-stop on-chain exchange. Bluefin shows a trend of surpassing Cetus, with the community even comparing Bluefin to Sui's Hyperliquid. Since its upgrade in September 2023, Bluefin's trading volume has exceeded $44 billion.

1. Core Mechanism

Bluefin was established in 2021, initially on the Arbitrum chain, and began operating on Sui in 2023, currently upgraded to the Pro version. It is a decentralized trading platform developed on the Sui blockchain, primarily serving the cryptocurrency market by providing efficient trade execution, liquidity pool management, and innovative trading mechanisms. Its main products include decentralized derivatives trading and spot AMM. Its core mechanisms include:

• One-Click Cross-Chain: Bluefin introduces an embedded cross-chain bridging solution, allowing users to complete cross-chain asset transfers without switching to third-party DApps. By integrating the Wormhole cross-chain protocol, users can quickly and securely transfer assets between different blockchain networks without cumbersome manual operations or additional security risks.

• Account Abstraction: Bluefin employs account abstraction technology, enabling users to log in to the platform for trading directly with their Google accounts, without needing to install additional wallets or manage private keys. The simplification of user experience and enhancement of security make Bluefin one of the more user-friendly products in blockchain applications.

• Bluefin Liquidity Pool: Bluefin offers an innovative liquidity participation model, allowing users to lend stablecoins to the platform's top market makers in a decentralized and non-custodial manner, thus avoiding the impermanent loss risks that LPs may face. Through this method, users can achieve higher returns without bearing the capital risks associated with traditional market-making models.

2. Major Innovations

• Sub-Second Trading Speed: Bluefin Pro can confirm transactions at speeds of about 30,000 TPS in under 30 milliseconds, providing users with a lightning-fast trading experience.

• Low Gas Costs: Bluefin's average gas cost is about $0.01, attracting more large users to participate.

• Full Margin Trading: Full margin trading accounts are also a feature of Bluefin, ensuring a better user experience for contract users.

• Products Combining Spot and Derivatives: Bluefin's rich product offerings have attracted a large number of users.

3. Revenue Sources

Bluefin's main revenue sources are trading fees, cross-chain bridging service fees, and liquidity pool management fees.

4. Token Economy

The total issuance of the Blue token is 1 billion, with 52% allocated for ecosystem growth, 20% for core contributors, and 28% for strategic partners. Among the tokens allocated for ecosystem growth, 32.5% is for user incentives (of which 19.68% is for airdrops and 12.82% for subsequent incentives), 8.5% for protocol development, 6.5% for treasury, and 4.5% for liquidity reserves. Additionally, the tokens allocated to core contributors and strategic partners are locked for the first year and can only begin to unlock linearly in the second year.

In the token economy, it is noteworthy that 19.68% of the total supply of Bluefin tokens is used for airdrops, primarily distributed to Bluefin's ecosystem participants. This reward mechanism enhances user participation and community trust, thus accumulating a large number of real users through community activities such as trading mining and stablecoin pools.

5. Financing Situation

Since 2021, Bluefin has completed four rounds of financing, raising a total of $29.2 million. The lineup of investment institutions is very impressive, including Polychain Capital, CMS Holdings, Wintermute, among others, with Polychain Capital and CMS Holdings having invested multiple times.

6. Business Data

Since its launch in September 2023, Bluefin's trading volume has surpassed $44 billion. Currently, there are 190,491 unique users and a TVL of $89.76 million. In the past 24 hours, the contract trading volume was $180 million, and the spot trading volume was $70 million. Additionally, the protocol's revenue in the past 24 hours was nearly $25,000, making it the third-largest revenue-generating protocol on the Sui chain. Due to its outstanding data performance, Bluefin is referred to as a dark horse project on Sui.

2. Meme

Compared to leading Meme projects on Solana and BSC chains, the Meme projects on the Sui chain have a relatively weaker out-of-circle effect in terms of community sentiment and market capitalization performance, but there are still several noteworthy targets. This report will focus on introducing the most representative Meme projects currently in the Sui ecosystem.

2.1 AAA

AAA is a cat-themed Meme in the Sui ecosystem. Its main narrative is that Sui developer @SuiDeveloper accidentally discovered a cat and posted this image on "buy Sui Name Service." As community sentiment surged, Drippy created this Meme token.

Currently, AAA's market capitalization has fallen back to around $3 million, but it is worth noting that AAA still has a high level of community sentiment, and Drippy continues to support the development of the AAA community.

2.2 HIPPO

HIPPO is known as the hippo on the Sui chain and was once a popular Meme on the Sui chain. Its main narrative revolves around the CTO's "little hippo Moo Deng," inspired by Moo Deng. Moo Deng was born on July 10, 2024, and lives with its family at the Khao Kheow Open Zoo in Thailand. HIPPO has established a partnership with the zoo where Moo Deng resides, aiming to support wildlife conservation by donating profits to the zoo.

HIPPO focuses on charity and combines with the popularity of the Meme Zoo, garnering high expectations from the community for its breakout potential. The HIPPO community has previously collaborated with several leading CEXs for large-scale airdrop activities, which have significantly boosted sentiment in a short period. Its market capitalization once approached $300 million, surpassing Solana's MOODENG, but has now fallen to $50 million. However, based on current performance, after the short-term sentiment FOMO, HIPPO still needs new narrative stimulation.

2.3 LOFI

LOFI has a main narrative theme centered around global warming, presenting itself as a snowman protecting the world against climate change. The LOFI community has strong cohesion, promoting the community concept of "We are Lofi," emphasizing collective collaboration and mutual progress, encouraging community members to contribute to the ecosystem.

The LOFI team is publicly identified and consists of a dozen artists, chief developers from S-tier projects, and cryptocurrency executives, who purchased 25% of the token supply after launch. This 25% of tokens is primarily allocated as follows: 10% for operational funds, 10% for market making and CEX listings, and 5% for ecosystem airdrops. Additionally, the LOFI team will airdrop tokens to Sui Play 0x1 gamers, popular NFT holders/community members, Sui Foundation, and Mysten Labs users. Notably, LOFI will also allocate 2.5% of LP fees to charitable projects aimed at protecting the Earth's water sources.

From the development of Meme projects, LOFI has carved out its unique path. Interestingly, LOFI has also attracted the attention of the AI Agent analysis tool aixbt. As a result, the community views LOFI as having a long-lasting narrative, with the potential to become the leading Meme on Sui. Its highest market capitalization exceeded $200 million, currently falling to $120 million, but it still maintains a relatively high market sentiment.

3. Infrastructure

The development of Sui in various directions, including DeFi, is supported not only by the technical advantages of the public chain itself and the strong backing from Sui officials for the ecosystem but also by the continuous improvement of infrastructure construction on the Sui chain. This report will introduce the main infrastructure projects currently on Sui.

3.1 Oracles

The largest oracle on Sui is Pyth Network, which launched on the Sui network in May 2023. Notably, Pyth Network is also a leading oracle on the Solana chain. The main difference between the two is that Pyth can provide low-latency, high-frequency data feed services on Solana, while on Sui, it meets high-performance and concurrency demands. On the Sui chain, Pyth Network utilizes an innovative low-latency pull model oracle, which can be simply understood as allowing users to "pull price" updates based on their needs in a blockchain environment. Based on this design, builders on the Sui network can access the required data instantly without permission.

Pyth Network's core products are mainly divided into three parts: Price Feeds, which provide real-time updates for smart contracts; Benchmarks, which provide historical market data; and Pyth Entropy, which offers a secure random number generator. Pyth has received support from top VCs such as Jump Crypto, Wintermute Ventures, Multicoin Capital, and Delphi Digital. The total issuance of the native token PYTH is 10 billion, with 52% allocated for ecosystem growth, 22% for data providers, and 10% each for protocol development and private sales, with 6% allocated to the community.

Pyth Network serves as a core infrastructure on Sui, providing reliable market data support for decentralized applications on the Sui chain. Leading protocols on the Sui chain, including NAVI protocol, are within Pyth's price feed range. Leveraging Sui's high-performance characteristics, Pyth achieves low-latency, high-concurrency data updates, further promoting the development of the Sui ecosystem.

3.2 Cross-Chain Bridges

The cross-chain bridges on Sui can be mainly divided into the third-party cross-chain bridge Wormhole and the native cross-chain bridge Sui Bridge.

Wormhole is the primary cross-chain channel on the Sui chain, integrating major public chains such as Ethereum, Solana, and Base, offering a diverse range of cross-chain options. According to Wormhole Scan data, in the past seven days, assets flowing from Ethereum to Sui via Wormhole amounted to $21,972,732, while assets flowing from Ethereum to Solana totaled $56,086,671. From the trading records of the past seven days, Sui has captured more funds flowing out of Ethereum than Solana. Additionally, we can observe that Ethereum remains the main source of inflow to Sui.

Although Wormhole is the preferred cross-chain option for the Sui network, it does have some issues. For some users, the variety of tokens on Wormhole can lead to frequent mistakes in cross-chain selection. Moreover, some community users have discovered that assets transferred via Wormhole are not recognized in Sui's DeFi protocols. These issues have prompted the Sui officials to seek further optimization of cross-chain solutions, leading to the launch of the official Sui Bridge.

Sui Bridge officially launched on the Sui mainnet in September 2024. The main difference from Wormhole is that, as a native cross-chain bridge, Sui Bridge primarily relies on the network's validators to ensure security on the chain. Currently, it mainly supports interoperability between Sui and Ethereum, with supported assets including ETH, wETH, and USDT. The Sui Foundation has stated that it will expand more functionalities and assets in the future. Additionally, its liquidity will transition from the existing WETH-USDC pool to the ETH-USDC pool.

In December 2024, Sui Bridge integrated Circle's Cross-Chain Transfer Protocol (CCTP), helping users transfer native USDC between Sui and eight other chains (Arbitrum, Avalanche, Base, Ethereum, Noble, OP Mainnet, Polygon PoS, and Solana). Users only need to pay transaction fees on the source and target chains for cross-chain USDC transfers. The integration of CCTP brings more possibilities to the Sui network, enabling more combinatorial trading and unlocking more advanced on-chain automation features.

3.3 Stablecoins

To better stabilize the development of DeFi, Sui has already integrated mainstream stablecoins such as USDT and USDC as native stablecoins. According to official Sui information, the following native stablecoins were launched on Sui in 2024:

• Circle's native USDC: Circle's native USDC was integrated into the Sui network in October 2024. USDC is the most popular stablecoin in the market after USDT. This is mainly based on the aforementioned cross-chain transfer protocol CCTP, which enables USDC to be transferred between the Sui chain and other chains.

• USDY from Ondo Finance: USDY launched in May 2024 and is the first native stablecoin developed by the RWA leader Ondo on Sui. USDY is backed by short-term U.S. Treasury bonds and bank deposits, generating returns over time. It primarily targets users who wish to design asset returns without relying on traditional mining for yield.

• Agora AUSD: AUSD was introduced to the Sui network in September 2024 as the second native stablecoin on Sui. AUSD mainly targets users operating across multiple chains and requiring cross-chain functionality.

• FDUSD from First Digital: FDUSD was integrated into the Sui network in November 2024, issued by First Digital Labs. FDUSD can be exchanged 1:1 with the U.S. dollar, with reserves including funds from Asian banks and U.S. Treasury bonds. The primary users of FDUSD are those who rely less on the U.S. reserve structure.

4. GameFi

GameFi is also one of the key areas that Sui officials are focusing on. In 2024, Sui launched the SuiPlay0X1 handheld gaming device, providing more possibilities for connecting with real gamers. Sui games aim to allow players to focus on the game itself, avoiding the various barriers present in existing Web3 games, such as downloading wallets, purchasing tokens, and managing private keys. To enhance GameFi on-chain, Sui is actively improving the underlying infrastructure for games, such as establishing partnerships with operating systems like Playtron OS and collaborating with Google Cloud to help developers access the latest blockchain information more easily. Additionally, Sui is incubating commercially rich GameFi games within its ecosystem, exploring more connections between Web2 gamers and Web3 gamers, bringing a fresh perspective to the GameFi field.

In terms of GameFi projects, this report primarily selects the top three GameFi projects currently on Sui based on on-chain data, focusing on active accounts and trading volume.

4.1 BIRDS

BIRDS is unique in that it combines Memecoin and GameFi gameplay, currently primarily played on Telegram mini-programs. BIRDS introduces a new concept to GameFi through the Airdrop2Play and Play2Earn models.

BIRDS is based on the Sui ecosystem and excels in integrated marketing. Recently, BIRDS has collaborated with major protocols in the Sui ecosystem, including Bluefin, NAVI Protocol, Cetus, DeepBook Protocol, and Turbos Finance, to conduct token airdrop activities, allowing users to receive BIRDS airdrops simply by depositing tokens from the partnered protocols.

According to official data, BIRDS has over 7 million daily active users, more than 100 million task participants, and over 9.8 billion game birds. On-chain interactions exceed 1.1 million, with over 38.3 million completed on-chain transactions and a total of over 3.5 million NFTs minted. Data from the Suivision on-chain shows that in the past 24 hours, BIRDS ranked fourth in total active accounts across the entire Sui network; in terms of total transactions, it ranked fifth.

BIRDS is also actively upgrading its products, with an NFT trading market set to launch soon, receiving strong support from the BIRDS community. An interesting observation is that BIRDS is very supportive of major developments on the Sui chain; whenever there is a significant update on Sui, BIRDS engages in retweeting and interaction, which helps more users on Sui notice BIRDS. As a GameFi project linking Web2 and Web3, BIRDS is likely to attract more gamers' attention to the Sui chain itself, potentially serving as a good example of the symbiotic relationship between a public chain and its ecosystem.

Compared to other AAA GameFi games, which require long development cycles and unlimited funding, BIRDS, as a lightweight GameFi game, seems more grounded and can attract more real user participation. However, in terms of gameplay, BIRDS may still need further upgrades.

4.2 Wave Wallet

Wave has received strong support from Sui officials and was integrated into the Sui public chain in 2023, with investors including the Sui Foundation. In the report released by Sui officials in 2024, Wave ranked first based on comprehensive indicators such as user numbers and transaction volume. Wave Wallet uses Telegram as its gaming platform, combining wallet functions with gaming to provide more convenience for gamers. Players using Wave Wallet can earn OCEAN points to unlock various activities in the game. Additionally, Wave Wallet has set up various game rewards to encourage the ecosystem, including NFTs and the SUI token.

Wave Wallet is not limited to the GameFi direction; it has also proposed the concept of integrating with DeFi gameplay. It has currently integrated with leading DeFi protocols on the Sui chain, such as NAVI Protocol, and launched staking mining activities. Wave GameFi allows users to earn rewards, participate in games, and increase their assets; Wave DeFi provides a fast and secure way to manage and grow users' crypto assets, as illustrated in the diagram below:

According to on-chain data from Suivision, in the past 24 hours, Wave Wallet had a total of 116,126 active accounts and 196,337 total transactions. Similar to BIRDS, Wave Wallet also places great emphasis on interaction with the Sui mainnet and has performed well in community engagement. Currently, Wave Wallet operates in the form of points and is set to conduct a Token Generation Event (TGE) in February, with the community having high expectations for Wave Wallet.

4.3 Aylab

Aylab has a founding team with rich experience in the gaming field, having developed the popular game Cricket Fly, which has over 7.5 million downloads and more than 2.5 million UAW. Aylab's product has upgraded from the original GameFi gaming field to a Web3 advertising engine.

According to official data, Aylab has over 10 million active wallets and 200 million cross-application transactions monthly. On-chain data from Suivision shows that in the past 24 hours, Aylab had a total of 8,679 active accounts and 8,759 total transactions.

Aylab has also received attention and support from the Sui Foundation. According to Aylab's official dashboard, Aylab now supports multiple fields, including Games, NFTs, DeFi, and Art. Recently, Aylab integrated the well-known Korean game, Otherworld, from @own_protocol, which is an IP-based NFT game that has garnered widespread attention from the Korean community.

Aylab's transformation can help clients capture precise user groups and has upgraded the advertising distribution system in Web2. While Sui officials define Aylab as a GameFi project, the community prefers to position Aylab as a consumer-grade application project in Web3. As an advertising platform, Aylab helps clients with user acquisition and marketing, becoming an important part of Sui's business support model. However, Aylab is still in the early stages of development after its transformation, and from the perspectives of community size and project profitability, it needs to continue building to unlock more possibilities.

5. NFT

The NFT trading market on Sui has not been particularly smooth. Previously, the leading NFT trading market on Sui, hyperspace.sui, ceased operations on September 17, 2024, and other NFT trading markets are actively seeking more development routes. This report selects currently representative NFT trading markets on Sui for discussion.

5.1 Tradeport

Tradeport has been selected as one of the community's favorite projects on the Sui chain in 2024. Tradeport is a multi-chain NFT trading platform that aggregates NFTs from all markets, including Movement, Base, Sui, Aptos, Near, and Stacks. In addition to NFT trading functions, Tradeport encourages users to mint their own NFTs and will adjust its development of more advanced tools based on community needs.

Tradeport focuses on marketing and, in the recent Season 1 event, will airdrop points to active NFT traders. At the same time, Tradeport keeps a close eye on NFT market trends and has timely launched popular NFT projects from Aptos, such as @AptosMonkeys. In the recent Movement Testnet NFTs event, over 1,000 users participated in minting. From the past seven days of NFT trading market data, it can be observed that Tradeport is actively exploring and integrating with current market hotspots to bring more new traffic and funding to the project.

Tradeport has not yet issued a token, and its airdropped NFTs and point rewards are highly attractive to the community. In future plans, Tradeport will also expand to more public chains and develop tools that better align with the market, positioning itself as a builder of NFTs on the Sui chain.

5.2 BlueMove

BlueMove is also a multi-chain market, supporting Aptos, Sui, and Sei. Additionally, BlueMove integrates NFT and Memecoin trading. Interestingly, BlueMove also supports staking mining, but these tokens are relatively niche projects, with APY reaching as high as 10,000%. However, from the liquidity pool perspective, current liquidity is not high; for instance, the SUI-MILK liquidity pool has only 1,758 SUI.

Recently, BlueMove has focused on developing Move Pump Pro. However, in the Pump market, BlueMove is still in a very early stage. Compared to the more mature Pump platforms on the Solana and Base chains, Move Pump seems to be just starting out. From the past 24 hours, among the most popular tokens on Move Pump, only a few projects from the Sui ecosystem have a high level of market recognition.

Since its inception in 2022, BlueMove has accumulated some users over more than three years of development. However, from the overall project strategy perspective, BlueMove has undergone multiple adjustments to cater to the market, but each adjustment has not highlighted the project's unique characteristics. Overall, BlueMove needs to strengthen its unique branding to create new perspectives.

3. Future Opportunities and Challenges for Sui

Backed by its unique Sui MOVE technical advantages and forward-looking ecological layout, Sui has built a competitive ecosystem. The community still holds a positive outlook on Sui, believing it to be one of the most promising public chains for the future. According to data from @ElectricCapital's 2024 developer survey, Sui has the highest number of monthly active developers and full-time developers in the Move ecosystem, and it is also one of the top 10 ecosystems with the fastest growth rate of monthly active developers, with a year-on-year growth of 24%.

However, as a newcomer among public chains, Sui also faces various development opportunities and challenges.

1. Opportunities

1.1 Expansion of the RWA Track

Sui is closely following market trends, actively laying out the RWA track in addition to incubating projects within its ecosystem, such as establishing partnerships with Ondo and collaborating with Ant Group to support the expansion of the RWA ecosystem through ESG. With its efficient consensus mechanism and smart contract advantages, Sui is expected to become a major infrastructure in areas such as cross-border payments, asset management, and supply chain finance, providing new technical support for traditional financial markets and becoming a representative project in the RWA track.

1.2 Penetration of the DeFi Ecosystem

From Sui's exploration in the DeFi field, we can see that Sui has squeezed into the top ten. However, in terms of market share, Sui still has significant room for growth. Additionally, DeFi protocols on the Sui chain are continuously innovating, and in the future, Sui's high throughput and low latency will attract more innovations in DeFi applications such as DEXs and lending platforms.

1.3 Entry into the GameFi Field

Sui's Move language provides developers with a more efficient programming method, and the continuous expansion of the ecosystem also brings long-term growth potential to Sui. Furthermore, Sui officials are actively promoting collaborations with leading gaming companies in Korea and elsewhere. With its high performance, low latency, and innovative parallel processing technology, Sui has enormous development potential in the gaming field. As the Web3 gaming and virtual asset markets grow rapidly, Sui is expected to become the preferred foundational chain for these applications.

2. Challenges

2.1 Competing with Leading Public Chains

Since 2024, Sui has made remarkable progress. However, compared to mature public chain ecosystems, Sui still has a lot of room for improvement. Taking DeFi as an example, the following chart compares Sui's data with leading public chains using comprehensive indicators to measure ecosystem participation and user stickiness. In terms of daily transaction volume and daily active addresses, SOL occupies a leading position, while ETH is the leader in DeFi TVL.

2.2 Balancing Security and Scalability

Although Sui's parallel execution model and high-performance consensus mechanism have improved transaction speed and throughput, they may also bring more security challenges. In November 2024, Sui experienced a network outage, with block production stagnating for nearly two hours. In future developments, Sui faces the important challenge of ensuring network security and stability while maintaining decentralization and high performance.

2.3 Building the Developer Ecosystem

Despite Sui providing powerful development tools and resource support, its developer ecosystem is still in the early stages compared to public chains like Ethereum and Solana. Sui needs to strengthen the cultivation and construction of the developer community to encourage more developers to deploy applications on the Sui chain.

3. Conclusion

Sui achieved significant results in 2024, attracting top VCs such as VanEck, Franklin Templeton, and Grayscale. Since 2024, with the support of the Sui Move language and the Sui official's strong backing of its ecosystem, Sui has made tremendous breakthroughs in DeFi, infrastructure, stablecoins, memes, and GameFi. Currently, Sui's total DeFi TVL has surpassed $1.5 billion, ranking ninth among public chains. Protocols in various directions within the Sui ecosystem are continuously innovating, and Sui is also actively promoting the construction of native infrastructure, such as Sui Bridge and the native stablecoin USDC. These foundational efforts further drive the development of the Sui ecosystem.

However, as a newcomer among public chain projects, Sui still has a certain market gap compared to leading public chains. But this also presents an opportunity for Sui; as the cryptocurrency market continues to evolve, Sui is expected to become a leader in new market opportunities. At this stage, the areas where Sui can further deepen its efforts include but are not limited to the RWA track, DeFi track, and GameFi track. However, during its rapid development, Sui should pay attention to issues such as network security while balancing the needs of developers and users to promote the healthy and sustainable development of the ecosystem.

In summary, Sui's continuous strengthening of its foundation injects new vitality into the public chain, and Sui remains worthy of expectation.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。