Sui cryptocurrency (SUI) and its way to the top 20 of the CoinMarketCap ranking

The cryptocurrency market is characterized by high volatility and rapidly changing trends. One of the cryptocurrencies that managed to attract the crypto community's attention in 2024 is Sui (SUI), which ranked 16th by capitalization on CoinMarketCap. This coin's success is due to several factors, including its technical features, scaling approach, active community, and strategic partnerships.

Sui's technological features

Sui is developed based on the Move programming language, which was created for Diem (a cryptocurrency project from Meta). The move allows developers to create secure and scalable smart contracts, making Sui competitive with Ethereum and other major blockchains. Sui's key technological differentiators:

• Fast transaction processing. Sui uses a unique consensus algorithm that enables high-speed transaction processing. According to the developers' claims, the Sui network can process up to 100,000 transactions per second.
• Parallel data processing. Unlike most blockchains, Sui utilizes parallel processing, which significantly speeds up transaction execution and reduces network load. This provides a competitive scaling advantage, especially for high-load decentralized applications (DApps).
• Emphasis on security. Move is designed to protect against typical vulnerabilities in smart contracts such as overflows, unauthorized access, and memory management errors. This increases the reliability of blockchains based on it and reduces risks for users.

These technological aspects have made Sui attractive to investors and developers, especially those looking for a platform to build high-performance and secure decentralized applications (DApps).

Significant fund support and partnerships

Behind Sui's success is the support of well-known funds and large venture capitalists. The project has received investments from companies such as:

• Andreessen Horowitz (a16z) — $36 million in December 2021;
• FTX Ventures — about $300 million in September 2022.

This has enabled Sui to scale its network, develop its ecosystem, and attract new users.

In addition, partnerships with significant blockchain projects and DApps development platforms have also contributed to Sui's growing popularity. Partnerships with platforms such as Chainlink and The Graph are essential in this process.

Chainlink provides decentralized oracles that provide smart contracts with the external data they need to work correctly. Sui's integration with Chainlink allows Sui developers to access reliable and validated data from external sources.

One example of this integration is the SUI/USD data stream available through Chainlink. This stream provides up-to-date SUI/USD exchange rate data, which is especially important for financial applications and decentralized finance (DeFi).

The Graph is a decentralized protocol for indexing and querying data from blockchains. In collaboration with Sui, through subgraphs, developers can create and use APIs to access Sui blockchain data. This dramatically simplifies the process of developing decentralized applications. Integration with The Graph contributes to the growth of the Sui ecosystem by providing developers with the tools to build high-performance and scalable applications.

Attractive characteristics for DeFi and NFTs

Decentralized finance (DeFi) and non-fungible tokens (NFT) remain popular trends in the cryptocurrency industry. Sui is integrating features to enable DeFi protocols and NFT projects to run on its platform. In particular, the platform provides high speed and low fees, which is especially important for DeFi and NFT, where users prefer fast and low-cost transactions.

Below are the key DeFi protocols running on Sui:

• decentralized exchange (DEX) Cetus Protocol;
• Scallop's money market and lending protocol;
• Aftermath (afSUI) and Haedal (haSUI) liquidity-stacking protocols;
• derivatives exchanges BlueFin, Typus;
• Alpha Fi, Kai, Strater, and other yield aggregators.

Among the NFT projects launched based on Sui are the following:

• SuiFrens — a collection of NFTs including characters that personify Sui's architectural components;
• DeSuiLabs — a game with the possibility of winning both virtual and tangible prizes such as PS5 and Xbox;
• Fuddies— one of the first NFT collections on Sui, featuring 10,000 unique characters;
• Cosmocadia — consisting of 5 555 meticulously detailed avatars created by talented artists;
• Sips — a collection of 5 555 NFTs representing different drinks with various colors and expressions. ,

Diversification of use-cases

As seen in the previous section, Sui's essential success factors are the diversified use cases of its blockchain. The platform is active in several areas:

• Financial applications. Sui supports various DeFi protocols, such as decentralized exchanges, lending platforms, and protocols for creating stablecoins.
• Gamification and metaverses. Due to its high speed and scalability, Sui has become an attractive platform for game developers and metaverses. Blockchain-based games require high transaction speeds and low fees, and Sui fulfills these requirements.
• Social networks and media. Some projects use Sui to create decentralized social networking platforms, allowing users to control their data and maintain privacy.

These areas allow Sui to remain in demand in the market and attract different groups of users, which also positively impacts the capitalization of the project.

The economic model and liquidity

The capitalization of a cryptocurrency largely depends on its economic model. In the case of Sui, a tokenomics mechanism has been developed to ensure a balance between issuance and demand.

The total supply of SUI tokens is 10 000 000 000, and they are distributed as follows:

• 50% — community reserve — these tokens are intended to support the ecosystem, including validator rewards, delegator rewards, research and development funding, and grant programs for startups in the Sui ecosystem;
• 20% — early adopters;
• 14% — investors;
• 10% — owned by Mysten Labs, the developer of the Sui blockchain;
• 6% — intended to reward the community and testers of decentralized applications.

This distribution allows us to maintain a balance in the market and avoid a sharp drop in the token price due to excess supply.

In addition, the high liquidity of the token on major exchanges such as Binance, Coinbase, and Kraken helps to increase trust among investors. It provides access to the token for a broad audience.

Conclusion

The demand for new blockchain solutions continues to increase in the cryptocurrency market. Sui mainly attracts investors interested in scaling prospects. Given the limited scalability of several popular blockchains, such as Ethereum, many investors see the potential of Sui as a promising alternative.

Sui demonstrates that young projects with innovative technology and strong backing can succeed commercially if their strategy meets current market demands.