What is SUI?

SUI is the native Layer 1 blockchain token developed by Mysten Labs. The SUI token powers a next-generation blockchain platform designed for high performance, scalability, and security, with a special emphasis on user-friendly experiences and robust smart contract functionality. The SUI platform utilizes an object-oriented programming model and employs a language called Move—a secure programming language originally developed by Facebook (now Meta) for the Libra (later renamed Diem) project.

As the native token of the SUI ecosystem, the SUI token is used to pay transaction fees, participate in network governance decisions, and incentivize validators and other participants in the network. The SUI ecosystem is designed to support a wide variety of decentralized applications (DApps), including decentralized finance (DeFi), NFT marketplaces, gaming, social media, and metaverse projects.

SUI's design philosophy is to build a developer-friendly and efficient blockchain infrastructure capable of handling large-scale transaction volumes without sacrificing security or user experience. Its architecture allows for faster confirmation times, lower transaction fees, and greater composability, giving it a unique competitive edge in the blockchain space. Unlike many traditional blockchains, SUI focuses on horizontal scalability, enabling the network to seamlessly grow with its user base.

How does SUI work?

The SUI blockchain is based on a unique architectural design that distinguishes it from traditional blockchains:

1. Parallelized Transaction Processing: SUI utilizes an innovative consensus mechanism that allows unrelated transactions (those not affecting the same assets) to be processed in parallel, significantly increasing throughput and performance.

2. Object-Centric Design: Unlike account-based models, SUI uses an object-centric model that treats all assets and data as independently operable objects, allowing for more granular transaction management.

3. Move Programming Language: SUI uses the Move programming language to build smart contracts, offering stronger security guarantees and a resource-oriented design especially suited for digital assets.

4. Consensus Mechanism: SUI uses a variant of Satoshi-based consensus (PoS) called the Narwhal and Bullshark consensus engines, delivering higher throughput and lower latency.

5. Proof of Stake (PoS): Validators participate in securing the network by staking SUI tokens and receive rewards in return.

6. Delegation Mechanism: Token holders can delegate their SUI tokens to validators to share in a portion of the rewards without running a node themselves.

Who created SUI?

SUI was created by Mysten Labs, a company founded by core researchers and engineers from Meta’s (Facebook’s) Diem blockchain project. The founding team includes: Evan Cheng (CEO), Sam Blackshear (CTO), Adeniyi Abiodun (CPO), and George Danezis (Chief Scientist).

These founders possess deep expertise in distributed systems, cryptography, and blockchain technology. In 2022, Mysten Labs raised over $300 million in funding from prominent investors including FTX Ventures, a16z (Andreessen Horowitz), and Coinbase Ventures. This includes a $300 million Series B round, pushing the company’s valuation to approximately $2 billion.

Notably, members of the founding team previously contributed to the development of the Diem blockchain, bringing a wealth of technical experience to SUI. Especially Sam Blackshear, who is one of the principal developers of the Move language, giving SUI a unique technological advantage. The team’s combination of academic background and industry experience allows Mysten Labs to integrate theoretical innovation with practical design in building SUI.

How is SUI different from Ethereum?

• Programming Model: SUI uses an object-centric model, while Ethereum uses an account model, giving SUI advantages in handling parallel transactions.
• Programming Language: SUI adopts the Move language for stronger asset security guarantees; Ethereum uses Solidity, which—despite its mature ecosystem—has a history of security vulnerabilities.
• Scalability: SUI’s architecture is designed for high-throughput scenarios via parallel processing, while Ethereum is addressing scalability through Layer 2 solutions and sharding.
• Gas Fees: SUI offers a more predictable and stable gas fee structure, whereas Ethereum gas fees can fluctuate significantly under network congestion.

How is SUI different from Solana?

• Processing Model: SUI uses an object-centric model enabling unrelated transactions to be processed in parallel; Solana employs a single global state model but boosts parallelism using timestamp technology.
• Programming Language: SUI utilizes Move, tailored for digital asset handling; Solana supports multiple languages like Rust, making its ecosystem more diverse.
• Network Stability: Solana has historically experienced network outages; SUI’s architecture is designed to offer better stability and fault tolerance.
• Scaling Approach: SUI scales primarily through horizontal expansion; Solana emphasizes vertical scaling and hardware optimization.

How is SUI different from Aptos?

While both SUI and Aptos stem from the Diem project’s technology, and share several similarities, they differ in key areas:
• Technical Origin: Both were founded by ex-Diem team members and use the Move language for smart contracts.
• Transaction Model: SUI’s object-centric model is optimized for parallel processing of unrelated transactions; Aptos uses a Block-STM system to enable concurrent transaction processing.
• Consensus Mechanism: SUI employs the Narwhal and Bullshark consensus engines; Aptos uses a modified version of the DiemBFT consensus.
• Market Positioning: Both target high-performance blockchain markets, but differ in implementation details and ecosystem strategies.

SUI Tokenomics

The total supply of SUI tokens is 10 billion, distributed as follows:

1. Team and Early Investors: Around 31% (approx. 3.1 billion SUI) allocated to Mysten Labs’ team members, advisors, and early investors—usually with long-term vesting to ensure commitment to the project’s development.

2. Community Reserve: About 40% (approx. 4 billion SUI) reserved for ecosystem development, developer incentives, marketing, and other growth initiatives.

3. Validator Subsidies: Roughly 10% (approx. 1 billion SUI) used to reward early validators and ensure network security and decentralization in the initial stages.

4. Liquidity and Strategic Partnerships: Around 9% (approx. 900 million SUI) allocated to provide initial market liquidity and establish strategic alliances.

5. Public Sale and Community Airdrops: About 10% (approx. 1 billion SUI) distributed via public sales, IDOs, and community airdrops.

SUI’s inflation model is designed with a higher initial inflation rate that gradually decreases over time, trending toward low or zero inflation in the long term. A portion of transaction fees is burned to implement a deflationary mechanism, similar to Ethereum’s EIP-1559.

What Are the Factors Influencing the Price of SUI?

1. Market Adoption and Ecosystem Development: The speed of ecosystem development for SUI directly affects its market demand and value. Developer activity is a key indicator—an active developer community means more innovative applications will be built on SUI, attracting more users. In October 2024, Sui partnered with Circle to integrate USDC natively on its blockchain, enhancing Sui’s liquidity. The usage of stablecoins on the Sui blockchain grew from $540,000 a year ago to $4.9 million, showcasing Sui’s rapid expansion in the DeFi sector. Additionally, successful DeFi projects, NFT marketplaces, or blockchain games can bring real value to the SUI ecosystem, increasing the utility and demand of the token.

2. Technological Development and Network Upgrades: The performance and stability of SUI’s mainnet are crucial to investor confidence. Stable network operation and efficient transaction processing help attract more enterprises and developers. Smooth implementation of network upgrades can enhance SUI’s functionality and competitiveness, often having a positive impact on its price. Interoperability solutions with other blockchains can expand SUI’s use cases, promote cross-chain asset flows, and increase the overall ecosystem value.

3. Token Unlock Events: The token unlock schedule for the team and early investors has a direct impact on market supply. Large-scale token unlocks may increase short-term supply; if market demand is insufficient to absorb this new supply, it may exert downward pressure on the price. Investors often closely monitor token unlock timelines and consider them a key factor in their investment decisions.

4. Market Perception and Media Attention: Positive coverage from mainstream media can boost SUI’s visibility and credibility, attracting a broader investor base. Discussions and sentiment trends on social media often significantly impact short-term price fluctuations. Positive endorsements or support from industry leaders and prominent influencers can strengthen market confidence in SUI and enhance its standing in the competitive blockchain space.

5. Overall Cryptocurrency Market Trends: The price trends of market leaders like Bitcoin and Ethereum generally drive the entire cryptocurrency market, and SUI is unlikely to move independently of these trends. Overall capital flow in the crypto market, including institutional investors entering or exiting, affects the fund allocation to all tokens, including SUI. Macroeconomic factors such as global inflation rates, changes in central bank interest rate policies, and economic growth expectations indirectly influence investor risk appetite and thus impact the valuation of crypto assets like SUI.

6. Regulatory Environment: Regulatory changes in major global economies can have profound effects on the legality and usage of crypto assets like SUI. As the crypto industry evolves, regulators continue to adjust and refine compliance requirements. SUI’s ability to adapt to these changes will affect its long-term prospects. Strict regulations in certain regions may limit the use and trading of SUI, while friendly regulatory environments could promote its adoption and value growth.

7. Competitive Landscape: Competition in the high-performance blockchain space is intensifying. The development of platforms like Ethereum, Solana, Avalanche, and Aptos will influence SUI’s market share and value proposition. Technological innovation is the core competitiveness in the blockchain sector. Whether SUI can maintain its technical advantage will directly impact its long-term competitiveness and market valuation. Market share changes reflect user and developer preferences, which ultimately translate into changes in token value.

For more insights into the causes of SUI’s price fluctuations and how to interpret price movements, visit the SUI Historical Price page for more information.

Is SUI a Good Investment?

Potential Advantages:

1. Technological Advantage: SUI’s unique technical architecture, using an object-centric model and parallel processing capability, achieves higher throughput and lower latency than many traditional blockchains. This is especially beneficial for high-transaction applications like games, NFT markets, and DeFi platforms. As blockchain applications move into mainstream markets, the growing demand for high-performance blockchains could create long-term value opportunities for SUI.

2. Strong Team Background: The founding team of Mysten Labs comes from Meta (Facebook)’s former Diem blockchain project, with deep expertise in distributed systems and cryptography. Notably, Sam Blackshear, one of the main developers of the Move language, gives SUI a technical edge. This professional team background often results in more rigorous system design and better product planning—key factors for the success of a blockchain project.

3. Sufficient Funding Support: SUI has received over $300 million in funding from well-known investment institutions, bringing Mysten Labs’ valuation to approximately $2 billion. This financial backing enables the project to weather crypto market volatility and maintain its long-term development roadmap. Ample funding also allows greater investment in R&D and ecosystem building, attracting more developers and partners, and accelerating early platform growth.

4. Growth Potential: As a relatively new blockchain project, SUI is still in the early stages of its ecosystem, offering more room for growth compared to mature platforms. As more applications are deployed and users grow, demand for the SUI token may increase. Early investors may enter at a lower valuation and potentially gain higher returns if the project succeeds. As the ecosystem expands and network effects form, token utility and demand could grow rapidly.

Potential Risks:

1. Highly Competitive Market: SUI faces competition from established projects like Ethereum, Solana, Avalanche, and Aptos, as well as emerging platforms. These rivals may already have larger user bases and richer application ecosystems. The high-performance blockchain space is particularly crowded, with many projects claiming similar performance advantages, making it harder to stand out. Even if SUI has a differentiated technical edge, whether that can translate into market advantage remains uncertain.

2. Adoption Uncertainty: The success of a new blockchain platform depends on developer and user adoption, which is a challenging process. SUI must overcome the “cold start” problem—simultaneously attracting enough developers to build applications and users to use them. Switching costs for developers and users, especially those already deeply engaged in other chains, are significant. Slow adoption could reduce investor confidence and impact token prices.

3. Token Unlock Risk: In SUI’s Tokenomics, a significant portion is allocated to team members and early investors, often subject to lock-up periods. When large amounts of tokens are unlocked, the market may face a sudden supply surge. If demand cannot absorb the added supply, price pressure may occur. In bearish sentiment periods, holders may be more inclined to sell immediately upon unlocking, intensifying volatility. The token-holding behavior of the team and investors is a key factor for consideration.

4. Regulatory Risk: The global crypto regulatory landscape is evolving, with varied policies across regions. Regulatory uncertainty may affect SUI’s global adoption. Strict regulations could limit functionality or increase compliance costs, while overly loose environments may lead to market chaos. As a smart contract platform, SUI could face multifaceted regulatory challenges and must adapt to different requirements across jurisdictions, increasing project operational uncertainty and investment risk.

Investing in SUI requires comprehensive consideration of the above factors, along with a full understanding of its technical foundation, economic model, and market dynamics. Use the BingX SUI Price Prediction page as a reference to make decisions aligned with personal financial goals and risk tolerance. It is recommended to include it as part of a diversified investment portfolio, avoiding over-concentration in a single high-risk asset.

How to Store SUI Safely?

Whether you’re a long-term holder or a short-term trader, the secure storage of SUI is a matter worth serious consideration. Since different cryptocurrencies belong to different blockchains (such as ERC-20, Solana, BNB Chain, etc.), the required wallet support and operation methods will vary. Choosing the right, stable, and secure storage method will directly affect your operational flexibility and asset protection in the market.

For most users, we recommend storing SUI on the BingX platform. The benefits of doing so include:

• No need to manage private keys: Asset security is managed by BingX custodianship, so you don’t have to worry about losing private keys, backing up mnemonic phrases, or device theft. This significantly reduces the risk of losses caused by human error or hacking, while making asset management easier and more secure.

• No need to manage multiple wallets: Different tokens often use different blockchain protocols (e.g., ERC-20, SPL, BEP-20, etc.). If you choose to self-custody, you may need to manage multiple wallets and private keys simultaneously. Storing assets on BingX allows for effective consolidated management, reducing the risk of errors—especially suitable for users who hold multiple types of crypto assets.

• Flexible trading and low fees: BingX supports popular trading pairs like SUI/USDT and offers low transaction fees with a high-liquidity matching engine. You can buy, sell, engage in contract trading or strategy configurations in real-time without waiting for on-chain confirmation, greatly improving trading efficiency. Additionally, the platform offers a variety of derivatives and financial products, including contract trading, grid strategies, and savings vaults, enabling flexible asset allocation based on market conditions.

• Platform-level security assurance: BingX has a robust Proof of Reserve system to ensure every user’s asset is 100% backed. It also adopts cold/hot wallet tiered management, multi-signature verification, and abnormal behavior monitoring mechanisms, with regular third-party security and reserve audits to safeguard user asset safety and transparency.

If you prefer to control your assets personally, you can opt for a self-custodial wallet. Please take note of the following:

• Blockchain compatibility: SUI is a native token of the Sui protocol, so be sure to choose a wallet tool that supports the Sui blockchain to ensure proper asset sending and receiving.

• Common wallet tools: We recommend widely adopted wallets that support the Sui protocol, such as Sui Wallet, Martian Wallet, Ethos Wallet, and Surf Wallet.

• Private key risk management: Properly back up your mnemonic phrases and private keys, and store them offline in a secure location. If lost, your assets cannot be recovered and no platform can assist in retrieval. Before transacting, make sure your wallet supports the correct blockchain and that the transfer address is compatible—errors may result in permanent asset loss. Always verify the connection source before linking your wallet to avoid phishing websites or unauthorized access risks.

FAQ

What is the relationship between SUI and Meta (Facebook)?

SUI has no direct organizational relationship with Meta (formerly Facebook), but there is a significant talent connection. SUI’s development company, Mysten Labs, was founded by core engineers and researchers from Meta’s former blockchain project Diem (formerly Libra), including CEO Evan Cheng and CTO Sam Blackshear. These founders brought their experience and technical knowledge from the Diem project into the development of SUI—especially the Move programming language, originally designed for Diem and later adopted and enhanced by SUI. You could say that SUI inherits part of the technical DNA of the Diem project but is a completely independent blockchain project.

What is the connection between SUI and Aptos?

SUI and Aptos are often referred to by the community as the “Diem twin brothers” due to a few key similarities:

1. Shared origin: Both projects were created by former members of Meta’s Diem blockchain team. Aptos was founded by Diem’s former CTO Mo Shaikh and former tech lead Avery Ching.

2. Technical foundation: Both use the Move programming language for smart contract development, a language originally developed for Diem with a focus on security.

3. Funding background: Both projects have received significant funding from well-known investment institutions, indicating strong market interest in a “Diem tech revival.”

However, there are clear differences in technical implementation: SUI adopts a unique object-centric model and focuses on parallel transaction processing, while Aptos uses the Block-STM method to achieve concurrency. Although they share similar technical roots, their development paths and market strategies are diverging.

What are the advantages of Move compared to Ethereum, and why is it called the Ethereum killer?

The Move programming language offers several key advantages over Ethereum’s Solidity:

1. Resource-oriented design: Move treats digital assets as “first-class citizens.” Assets can’t be duplicated, accidentally lost, or arbitrarily created, which significantly enhances security—ideal for digital asset handling.

2. Formal verification: Move was designed with formal verification in mind, allowing developers to mathematically prove smart contract behavior, reducing vulnerability risks.

3. Flexible ownership model: Move offers advanced ownership and access control mechanisms for more refined asset management.

4. Better composability: Its modular design makes code reuse and combination simpler and safer.

5. Smaller attack surface: Compared to Solidity, Move reduces the chances of common security flaws such as reentrancy attacks.

As for the term “Ethereum killer,” that’s largely marketing and community hype. While SUI and other Move-based chains do have technical advantages, Ethereum holds a first-mover advantage with a massive developer community and ecosystem. Many new blockchains have been labeled “Ethereum killers,” but only time will tell which, if any, can truly challenge Ethereum’s dominance. More accurately, SUI and other Move-based projects represent a new direction for blockchain tech rather than a simple replacement.

What are the popular DeFi apps on SUI?

Popular DeFi applications on SUI include:

1. Cetus: A leading DEX and AMM on SUI, offering token swaps, liquidity mining, and cross-chain bridging services.

2. Turbos Finance: A DeFi platform providing leveraged and derivatives trading, allowing users to trade crypto assets with leverage.

3. Scallop: A lending protocol on SUI that allows users to earn interest by depositing crypto assets or to borrow assets.

4. Aftermath Finance: A platform for stablecoin swapping and liquidity mining, focused on low-slippage trading.

5. Kriya: A decentralized derivatives exchange offering perpetual contracts.

6. FlowX Finance: A DeFi protocol focusing on cross-chain asset management and yield aggregation.

7. Typus Finance: A platform offering structured financial products and automated investment strategies.

8. Bucket Protocol: A stablecoin protocol that allows users to mint and manage USD-pegged stablecoins.

These applications are continuously evolving. As the SUI ecosystem matures, more innovative DeFi applications may emerge. It’s worth noting that compared to more established blockchains like Ethereum, SUI’s DeFi ecosystem is still relatively young, but it is growing and innovating rapidly.