Author: Vincent @thecryptoskanda; Xuan twitter: @lvxuan147
It has been nearly a month since the official launch of Sui. Regardless of the boring route dispute with ETH Maxi, Sui has been controversial in terms of public opinion as the flagship based on Move language public chain and the most anticipated Non-EVM Layer1 public chain.
As a long-term observer and ecological investor of Sui, I believe that we have a responsibility to honestly discuss what has happened to the Sui ecology. This article will discuss the current situation of the Sui ecology from the perspectives of data, applications, events, and other aspects.
Sui on-chain fundamentals
Sui ecological progress
Suggestions for the current stage of the Sui ecology
Sui’s on-chain fundamentals
1. Asset total liquidity situation
TVL – Sui’s current on-chain TVL is $19.02m, with a peak of $36m in the past month.
The largest on-chain TVL application is the decentralized exchange Cetus, which currently accounts for more than 65% of the TVL, followed by Turbos. More than 60% of the TVL components are stablecoins (USDT/USDC, etc.).
2. Trading volume – Sui’s 7-day trading volume is currently at least $32.37m, ranking 20th among all chains. The main on-chain transaction volume occurs in Cetus.
2. Sui on-chain activity
Current Sui on-chain activity (7 days)
Total number of transactions: 1,129,884
Total number of Objects (including smart contracts, tokens, NFTs, etc.): 8.3 million+
Daily active address number: 22,000
Total active address number: 570,000
If Artemis’s statistical method is used, that is, the number of unique wallets that have traded in the past 24 hours, and compared with Solana and Aptos, which are also non-EVM chains, then the value is even lower:
From the trend, Sui’s on-chain activity has been showing a downward trend in the past week. It is worth mentioning that since the launch of the Sui mainnet, on-chain activity has fluctuated along with the IDO activities of several major ecological projects and DeFi.
The recent big events of Sui corresponding to the peak of active addresses are:
– 5.10 Cetus IDO
– 5.12 Turbos IDO
– 5.15 Suia IDO
– 5.19 Cetus opens permissionless pool function and meme project conducts airdrop across the network
3. $Sui Liquidity Situation
As the native token and main reserve asset of the Sui network, in the absence of on-chain native stablecoins, the liquidity of $Sui largely determines the on-chain asset liquidity of Sui. Here we do not discuss the future unlocking situation of $Sui, only the current circulation status.
Sui adopts the DPOS consensus mechanism. $Sui is currently delegated to 104 pledged nodes to obtain fixed $Sui staking rewards. The current circulating supply of $Sui is about 528 million, and the pledged $Sui is 7.29 billion. Although the circulating supply is priced at more than $500 million in USD, this is not reflected in TVL and is far from it.
This actual situation of insufficient on-chain liquidity, although contrary to many people’s stereotypes, has been demonstrated in several previous IDOs. The overfunding of Cetus and SUIA’s IDs by 135 times and 18 times respectively directly led to the $Sui lending pools in OKX and Binance being almost exhausted, accounting for 1/5 of the total supply of $Sui.
Looking at the current $Sui holding data, we can see that almost all of the circulating supply (possibly including most $Sui node staking rewards) is currently in a non-staked state. The largest of these holders are speculated to be centralized exchanges (accounting for more than 4%). That is to say, only a very small part of $Sui is used for on-chain activities.
Node staking can be regarded as an on-chain risk-free rate (similar to US Treasury bonds), which currently averages less than 6% for Sui. This is obviously not attractive to investors for a token that has not yet undergone large-scale unlocking. At the same time, due to the lack of an LST solution, Sui cannot be used as collateral to return to the Sui chain for leverage to leverage higher interest income, which further explains why most $Sui chooses to stay on centralized exchanges.
4. Cross-chain Bridge
Currently, only Wormhole cross-chain bridge is available in Sui, which supports cross-chain of more than 10 types of assets on 7 chains including ETH, BNB, and Polygon.
As the anchored assets for cross-chain in Sui, such as USDC and USDT, do not use the object format recommended by Sui, the totalSupply field in TreasuryCap cannot be read. Therefore, the stablecoin trading volume and minting volume of this cross-chain bridge in Sui have not been disclosed for the time being. The anchored coin addresses of ETH and SOL’s native USDC and USDT tokens in Sui can be found here.
Currently, only two sets of small token cross-chain minting data have been found through research, namely WFTM minting volume of 1949.96442242 and WAVAX minting volume of 31.64116756.
1. Who is carrying the on-chain data of Sui ecosystem
Dex: Cetus Cetus is the midstream pillar of DeFi ecosystem in Sui, and even the entire data on-chain of Sui ecosystem. Regardless of TVL or trading volume, it almost occupies an absolute dominant position. However, such a state is not healthy for the entire Sui chain.
Mole Machine gun pool:
Mole is a yield aggregator based on Sui and Aptos, which supports two machine gun pool modes: single coin and double coin, and has a leveraged mining function similar to AlBlockingca on BNB Chain. Currently, TVL is $180,000.
Souffl3/Clutchy NFT Trading Market:
Souffl3 is an NFT trading market on Aptos and Sui, which supports two launch modes: 0% tax, LaunchBlockingd, and Free mint, and has a mini-task module Bake Off.
Cluthy.io is an NFT and game market on Sui. It has a very strong IP reserve, including Fuddies NFT, which was launched on Cluthy. In the early stage, a large number of NFT players made Sui NFT known to the Twitter community through Cluthy’s social sharing function. Cluthy also has a small game platform similar to 4399, but the amount of play is not large at present.
NFT Collection: Fuddies
Sui Sha Niao NFT, known as the “BAYC” of the Sui community, with a total trading volume of 1.44M $Sui (Clutchy.io data), and the highest Twitter avatar rate of Sui NFTs on the entire internet. In a sense, it is one of the most representative examples of Sui’s current breaking of the circle.
GameFi: Abyss World
Abyss World is a soul-like ARPG game whose developer has just completed financing with a valuation of 100 million yuan. The early PR and activities were well done, attracting a lot of attention, and it can be said to be the most well-known Sui ecological game in the current industry.
However, Abyss World chose to conduct its IDO on Polygon and settle all game-related assets with Sui.
2. Flow Entry
Wallets and activity platforms are the main entry points for on-chain activity flows. Currently, the wallets that support the Sui ecosystem are mainly:
1. Sui (https://shorturl.at/sBJ02)
2. Suiet (Suiet.app)
3. Martian (martianwallet.xyz/)
4. Ethos (ethoswallet.xyz/)
5. OKX Wallet (www.okx.com/web3)
6. Surf Wallet (surf.tech)
Glass (https://glasswallet.app/ )
Currently supports iOS and Android downloads, but there are few dAPPs that support this wallet.
It already supports the use of Sui wallets and dAPPs.
Supports Sui wallet and $Sui assets, but does not yet support adding other assets on Sui, and the browser does not support Sui dAPPs.
Port3 is a multi-chain activity platform that supports multiple chains including Sui, and supports both on-chain and off-chain tasks. Users can complete relevant tasks by linking their Web2 social platform identity and Web3 wallet, and receive rewards.
Suia is a Sui-based activity NFT and social platform. Users can mint various activity commemorative NFTs on Suia and track project-related NFT activities.
Suggestions for the current stage of the Sui ecosystem
The challenges facing the Sui ecosystem at present are expected in the current market and liquidity environment, mainly: the number of mainnet projects online in the ecosystem is relatively low, the market performance of early main IDO projects is poor, and necessary infrastructure is not perfect.
Of course, ecological construction takes time and cannot be achieved overnight, and the market environment cannot be changed. The poor public opinion situation in the early stage is a fact… However, Mysten Labs and Sui Foundation still have a lot of room for rapid improvement:
1. Lower the Validator threshold, open and propose liquidity staking (LST) scheme
Sui currently has 104 Validators, and the threshold for new Validators is not the device, but the need for 30m $Sui staking. This has actually formed a high degree of centralization of $Sui, which is not conducive to competition between nodes.
Secondly, the current Staking scheme of 6% staking APY is not attractive enough for community users and cannot leverage staked tokens as collateral to leverage on the chain, so most $Sui is left on centralized exchanges. This has led to a serious lack of on-chain asset liquidity and a dilemma of insufficient $Sui reserve consensus.
In fact, liquidity staking can solve this problem very well. The Ethereum ecosystem has also crossed the river by feeling the stones, adding a lot of liquidity and innovative scenarios to the ecology without causing greater token selling pressure by increasing staking APY. From the perspective of development stage, Sui is far from worrying about “consensus overload” like Ethereum, but should use all means to enhance reserve consensus.
2. Increase cross-chain facilities
Cross-chain assets are the most important component of on-chain assets. Whether you like it or not, cross-chain bridges are currently irreplaceable key facilities. The degree of consensus of a chain is directly proportional to the number of cross-chain bridges, and more cross-chain bridges mean at least more arbitrage opportunities, more trading volume, and more users, ultimately leading to stronger consensus. This advantage is particularly evident for low-fee and high-speed chains like Sui.
As a long-standing cross-chain bridge supported by Jump, Wormhole is certainly trustworthy. However, in practical use, Wormhole cannot provide the same native assets and liquidity for “visitors” from each chain, and it is difficult to guarantee that trading will not be stuck on the chain. So, is it a better choice to encourage and introduce multiple types of cross-chain bridges?
3. Support native stablecoins
Even with more cross-chain facilities introduced, native stablecoins are still the key to on-chain trading prosperity. It reduces the user’s reserve threshold and anxiety brought by cross-chain, and is also the basis for the expansion of on-chain asset balance sheets. From ETH to BNB to Solana, history has proven that native stablecoins play a crucial role in the early expansion and sustained growth of public chain ecosystems.
Before Sui, stablecoin pioneers had made various attempts. It’s time to take advantage of the advantages of Sui’s latecomer, a stablecoin team that unites various DeFi protocols, has a clear credit expansion path, and continues to expand use cases, which is urgently needed to solve liquidity problems in the ecosystem.
4. Accelerate mobile wallet support
The core vision of Sui is to bridge more Web2 users to Web3. Obviously, more users, especially young users, are absolute supporters of “mobile first”. However, as you can see from my previous summary, the usable mobile wallets for Sui are pitifully few. You can imagine the frustration of participating in Cetus with 20 addresses established in the OKX wallet, but finding that you can only export the private key one by one to a laptop for use with Martian, let alone for those users who didn’t even know what crypto was before Sui.
Therefore, we urgently need a usable and user-friendly Sui mobile wallet product for iOS and Android. The dAPP team can also consider more integration with already available mobile wallets, or even further, a middleware team that can provide a connection standard similar to WalletConnect or various wallet API integrations can stand up.
5. Improvement of data visualization
Although I hate to say it, Sui’s current on-chain data visualization is one of the roughest I’ve seen. The main browser tools: Suiscan, Sui Explorer, SuiVision, most of which cannot even intuitively provide the total supply of objects such as Coin and NFT.
I know that Sui uses UTXO instead of EVM, but this is not a reason for data invisibility. Participants in the secondary market have already had a very complete and smooth data tool experience in the EVM ecosystem, and the above data is one of the most important indicators for their participation in the market. What we need to consider is that if we improve and surpass our competitors and provide users with an unprecedented smooth experience, isn’t this the way to go?
And there is a lot of work that Dapp teams have not completed. Why doesn’t DappRadar provide a Sui dAPP dashboard yet? Why haven’t the DeFi projects that have been launched completed the TVL and volume data access to DeFillama? Why can’t Portal Bridge provide transaction data and coinage volume of Sui cross-chain bridge? These are all extremely important parameters for operations and marketing. Without data, I can’t even write more threads to promote the SUI ecology.
6. Let It Ride
As a participant in the Sui ecology, Sui is a very diligent public chain team centered on engineers and most friendly to Asian developers. They leave more infrastructure engineering-related work to themselves rather than throwing it to the community to allow problems to spread. However, this attitude is a double-edged sword. On the one hand, it gives developers higher-density technical support; on the other hand, it forms a “meta-narrative” in a factual sense. Over time, there is a risk of insufficient development that is not related to the “meta-narrative” being considered “non-orthodox”, which will marginalize developers with crazy ideas and cause them to flow to other ecosystems, resulting in a lack of innovation. At EDCON in Podgorica, the Ethereum community has been observed to encounter such a bottleneck, and Vitalik even had to reconsider what “orthodoxy” is. Such experience needs to be learned from and avoided from being repeated.
As meme community enthusiasts often say, Let it ride, let developers play freely, and let the ecology prosper. Flowers often grow from the weeds.