SUI Gains Momentum Amid Market Volatility, TVL Surpassing Cardano ADA

The total value locked (TVL) on the Sui blockchain has jumped by around 82% over the past month to over $358 million, according to data from DeFillama. With this surge, Sui officially surpasses Cardano (ADA) in TVL, ranking at 12th position.

Despite the recent market turbulence, Sui shows strong performance, outpacing Cardano in TVL. There is a lot of strength in the DeFi market, regardless of the shifting token prices.

TVL on the Sui network has grown significantly since the Sui Foundation announced that the SUI token will be used as an incentive for projects built on the Sui ecosystem. This potentially drives a broader user base.

SUI Is Looking Good

Other on-chain data also suggest the growth of the Sui blockchain. Sui Explorer, Sui’s native on-chain tracking platform, shows that the number of daily active accounts is around 17,500. This represents a decline in the number of daily users compared to the recent peak in early December when the network saw a spike of up to 180,000 users in a short period. However, the overall account base has rapidly grown to over 9.5 million.

One of the reasons behind last month’s surge could be the increasing interest in inscriptions, with the introduction of SuiMint and Red Bull, a limited inscription collection on Sui.

Additionally, its native token, SUI, is among the cryptocurrencies that have gained momentum amid the market volatility. According to data from CoinGecko, SUI hit $1.3 per coin, up nearly 20% today. Besides SUI, MANTA, PENDLE, and ACE also show strong performance.

The gain happened when most top coins, such as Bitcoin or Ethereum, underperformed week-to-date. Notably, Bitcoin dropped below $40,000, down over 7% since the trading debut of spot Bitcoin exchange-traded funds (ETFs). Ethereum was also below $2,300 despite the recently successful Dencun launch on the Goerli testnet.

ETH prices are still way up from last year, and 2024 looks good for the token.

Enhanced Ecosystem

While unlocking new use cases for its native token, the Sui team also makes new developments within its ecosystem. Earlier this week, Mysten Lab, the team behind the Sui network, announced that it would extend its partnership with Alibaba Cloud.

In a recent tweet, Mysten Lab expressed enthusiasm, saying that the partnership is set to introduce a range of services dedicated to supporting both current and prospective developers on the Sui network. Among the offerings are an AI-enabled development environment, educational programming in universities, community events, and the translation of Move documentation into Mandarin Chinese and Korean.

One of the most exciting developments is the creation of an AI-assisted tool by Mysten Labs and ChainIDE. This tool will enable the generation of Move code based on natural language prompts from developers, leveraging the robust infrastructure and tech support provided by Alibaba Cloud. The initiative aims to enhance the efficiency of experienced developers while facilitating the learning process for newcomers to the Move language.

Alibaba Cloud will further strengthen the Sui infrastructure by offering full node services, ensuring the seamless functioning of the blockchain. The collaboration with strategic partner ShinamiCorp will see the provision of Gas Station benefits, simplifying user transactions and enabling smooth onboarding for new users.

Furthermore, Cetu, a leading Automated Market Maker (AMM) in the Sui Network ecosystem, has received backing from MetaMask. This development allows users to access Cetus using the MetaMask wallet. Cetus has experienced remarkable growth, with its cumulative transaction volume surpassing $700 million.

In December last year, Solend, a prominent lending platform with over $140 million in TVL and a community of over 170,000 members, expanded its presence to the Sui network. Having established itself on the Solana blockchain, Solend aims to leverage the Sui ecosystem to reach a wider user base and attract new builders.