Sui Ecosystem Status and Token Release Analysis

The Sui public chain has been online for over 40 days since its launch in early May. As one of the representative projects of the Move series public chains, Sui represents a different development path compared to Ethereum L2. Since the project's inception, it has been surrounded by controversy, particularly regarding its Token issuance method and release model, which have attracted significant attention. Some opinions suggest it may repeat the mistakes of ICP, while others compare its development trajectory with that of new public chains in 2021.

This article will analyze the current development status of Sui from the perspectives of on-chain data, ecological project development, and Token release situation.

1. On-chain Data Analysis

1. Total Locked Amount ( TVL )

As of June 13, Sui's TVL is approximately $15.22 million, with the DEX Cetus accounting for over 60%. Among all public chains and layer 2 networks, Sui ranks 54th in TVL. It is worth noting that its TVL peak once reached $36.01 million and has currently dropped by more than 50%.

In comparison, another Move ecosystem representative project, Aptos, currently has a TVL of 42.11 million USD, with a historical peak of approximately 65 million USD, ranking 34th in TVL.

2. Trading Volume

The daily trading volume on the DEX on Sui peaked on May 10, exceeding $19 million. Since then, it has shown a downward trend, with daily trading volumes mostly between $3 million and $6 million since June, indicating lower trading activity.

3. Network Activity

Since its launch, Sui has recorded a total of 16.53 million transactions, with an average TPS of 3, and a total of 850,000 active addresses, along with 104 active nodes. The highest TPS on the network was 26, which occurred on May 12, the day of the Turbos IDO.

From the perspective of daily active addresses, the peak occurred on May 20, reaching 130,000, mainly due to the launch of the permissionless pool feature by Cetus on May 19, and the meme project conducting airdrops across the network. On weekdays, the daily active addresses are usually below 10,000.

Compared to Ethereum L2, Sui's actual TPS is still at a relatively low level.

4. Cross-Chain Bridge

Currently, there are three cross-chain bridges supporting Sui network assets: Wormhole, kriya.finance, and WELLDONE. However, due to the lack of relevant data panels, it is not possible to accurately understand the specific cross-chain amounts.

2. Overview of Ecological Projects

As of June 14, the official Sui directory includes 66 projects, most of which are still in the testing phase. Among the projects that have gone live and issued tokens, most have performed poorly. Both projects that are leading DEXs have broken their initial prices, and the social platform SUIA has dropped nearly 81.82%. Only Suipad has performed relatively well, mainly due to its lower IDO pricing.

It is worth noting that due to the limited user and capital scale on Sui, some projects like Abyss World chose to conduct their IDOs on other networks ( such as Polygon ) instead of Sui.

3. Token Release and Demand Analysis

The total supply of Sui tokens is 10 billion, with an initial circulation of 528 million, accounting for 5.28%. From May to October 2023, there are two types of Sui tokens released:

1. IEO Token Release: Approximately 34.61 million tokens per month
2. Staking Node Incentive Release: 33.3 million tokens per month for the first three months, and 30 million tokens per month from the 4th to the 6th month.

In summary, approximately 67.94 million coins ( will be released each month in the first three months, accounting for 0.67% of the total ). From the 4th to the 6th month, approximately 64.61 million coins ( will be released each month, accounting for 0.64% of the total ).

Six months after the launch on November 2023, ( will witness a large-scale unlocking, with over 1 billion Tokens being unlocked that day, doubling the circulating Token supply.

![Sui ecosystem data and Token release situation analysis])https://img-cdn.gateio.im/webp-social/moments-c066ef35e39e0b1075ad34aa64fb7f6a.webp(

From the demand side, the Sui network currently sees low trading activity and few users, with no obvious demand for SUI Token in the short term.

4. Comparison with the Aptos Token Release Model

The total supply of Aptos Token is ), excluding staking incentives. The total supply is 1 billion coins, with an initial circulation of 130 million coins, accounting for 13%. After the launch, 4.54 million coins will be released each month in the first year, accounting for 0.45% of the total supply. Starting from the second year, the monthly release amount will significantly increase.

Aptos also has node staking incentives, with approximately 86% of the tokens in the network currently staked.

In comparison, both Sui and Aptos belong to low circulation, high inflation token models. However, Sui has a lower initial circulation, with a higher release amount in the first six months, and a one-time large-scale release after six months of launch. Overall, Sui faces greater token supply pressure in the first year than Aptos.

5. Conclusion

Sui is currently still in the cold start phase, with a weak user base and low trading activity. It needs to attract users and funds through continuous ecosystem development and activities.

Currently, the Sui team is more focused on technical development, including hosting hackathons and developer events, and has not yet launched large-scale user incentive measures.

In the current bear market environment, coupled with the ongoing development of Ethereum's Layer 2 networks, it is difficult for Sui to attract funds and users.

From the perspective of the token economic model, the release pressure of Sui's token is concentrated in the first year. In the case of insufficient demand, such a large token supply may lead to significant selling pressure on the SUI token.