LUCKNOW (CoinChapter.com) — The Sui blockchain has rapidly emerged as a top decentralized finance (DeFi) player in less than a year since its mainnet launch. According to recent data, Sui has broken into the top 10 DeFi ecosystems by total value locked (TVL). TVL refers to the total dollar amount of crypto assets deposited into DeFi protocols.
Sui Surpasses Established Giants in DeFi Adoption
Sui’s TVL recently surpassed $430 million, representing a massive 1000% growth in just four months. This puts Sui above more established blockchain projects, such as Bitcoin and Cardano, regarding DeFi adoption. However, by publishing, Sui had fallen back to the #11 spot in the DeFi rankings, overtaken by PulseChina, according to the latest data from DeFi Llama.
The rapid user growth validates both the underlying technology developed by Mysten Labs and the dedication of the Sui developer community, according to Greg Siourounis, managing director of the Sui Foundation.
“Most importantly, what we are seeing in these numbers is developers on Sui building products that people are using to address real-world challenges. That dynamic will form the basis of a sustainable decentralized network that lasts well into the future.”
Greg Siourounis said.
Sui is a layer-1 blockchain that launched its mainnet in May 2023. Similar to networks like Ethereum and Bitcoin, Sui allows developers to build decentralized applications. However, Sui uses a unique consensus mechanism called delegated proof-of-stake, designed to optimize speed, security, and scalability.
The native SUI token powers the network. The token is used for staking to help validate transactions, pay network fees, and participate in governance decisions.
Sui’s Expanding Ecosystem
The Sui ecosystem has expanded rapidly to 22 live DeFi protocols. Two protocols have amassed over $100 million in TVL While four others have surpassed $40 million TVL. This growth and adoption have coincided with substantial returns for the native SUI token. SUI prices rose 109% in January alone, marking a two-month winning streak for the token.
Recent infrastructure improvements have also supported growth, including integration with Banxa for easy fiat on-ramps and off-ramps. The native SUI token has additionally seen triple-digit percentage returns this year amid the heightened platform activity.
