Overview examination and some remarks on the Sui Network (SUI) ecosystem at the finish of 2023.
Overview of the Sui Network ecosystem: how to get started off
Recently, though studying to publish the SUI tokenomics study, I accidentally identified some funds movement signals in the SUI ecosystem when the complete assets locked (TVL) in the ecosystem protocol not long ago enhanced by close to ten instances. This is a incredibly remarkable development charge in the existing incredibly hard industry natural environment. So I feel possibly we should really devote some time understanding about the Sui ecosystem ideal now.
Situation of the Sui Network ecosystem
Sui has not long ago taken a amount of actions to motivate ecosystem growth, the most substantial of which is the launch of a $51 million ecosystem growth fund. This is thought of the principal driving force to appeal to developers and customers to Sui Network. This volume corresponds to 13.six% of the existing circulating provide of Sui and one% of the complete task provide of ten billion Sui.
The Sui Foundation confirms that the over token volume is drawn from the Sui Community Reserve, which is allotted to 50% of the complete SUI provide, in accordance to tokenomics. Furthermore, this sum of income has by now been launched and will have no affect on the existing circulating provide of SUI.
With the over move, not long ago, the complete protocol locked assets (TVL) on the Sui ecosystem has had notable adjustments.
Change TVL on Sui Network beginning November two, 2023. Source: DefiLlama
According to the information over DefilLamaTotal Protocol Locked Assets (TVL) on Sui enhanced from above $ten million in July 2023 to around $102.27 million as of nowadays (November two, 2023), equivalent to development a lot more than ten instances.
We’ll get a deeper appear at the TVL development over:
The ten finest tasks on Sui Network as of November two, 2023. Source: DefiLlama
As you can see, the Cetus task is the task with the highest TVL in Sui, with around $29.46 million, accounting for just about 29% of the complete TVL. The leading two and leading three are Navi Protocol ($25.01 million) and Scallop Lend ($ten.87 million) respectively, which are two lending tasks.
The remaining tasks have really distinct TVL amounts in contrast to the leading one and leading two, focusing mostly on the DEX and Lending segments.
It can be stated that, The existing pieces of the Sui Network ecosystem are nevertheless mostly DeFi – with two primary and well known types: DEX and Lending. The principal cause is that these task niches are the most primary, the basis for attracting funds movement and customers, and are not as well hard to produce when you can reference and shell out from tasks in advance. We will discover these tasks with each other later on.
Other notable figures
In addition to TVL development, Sui Network also boasts some noteworthy numbers:
Total amount of TX blocks on the Sui network in the final thirty days. Source: SuiScan (November two, 2023)
First, in the final thirty days, the amount Transaction blocks (SUI transaction blocks, consisting of a group of transactions packaged into blocks) grew really nicely, from twenty,000/day to above 170,000/day. This metric exhibits that Sui is beginning to appeal to customers once again.
Likewise, the amount of transactions has enhanced swiftly. Source: SuiScan (November two, 2023)
Also, one particular level you need to have to note is the current tense TPS (common amount of transactions processed per 2nd) of Sui is only about 82, this amount is really little in contrast to the ATH degree Sui after attained of 808. This exhibits us the actuality of Sui Network which is nevertheless only “warming up” and it nevertheless has a lengthy way to go in advance of reaching peak effectiveness with the existing amount of transactions.
Average TPS on Sui Network above the final thirty days. Source: Suiscan (November two, 2023)
Graph of the amount of new customers on Sui in thirty days. Source: SuiScan (November two, 2023)
In the final thirty days, if we look at only the very first half of the graph, we can say amount of new customers on Sui has not grown considerably, the energetic network exercise is mostly based mostly on previous customers. However, in the final days of October and early November, the amount of new customers started to improve considerably.
In the following aspect, we analyze some pending tasks on Sui Network ideal now.
Pieces of the Sui ecosystem puzzle
Class it can be nevertheless the most significant identify. Cetus is a decentralized exchange constructed on the two Aptos and Sui, centered on utilizing centralized liquidity to increase consumer encounter, lessen transaction slippage…
Currently, Cetus is the leading TVL task on Sui with $29.46 million. Along with the development of the ecosystem, the project’s TVL has also recovered really a bit from the June 2023 decline and is moving in direction of returning to the ATH degree (close to $thirty million).
TVL on Cetus from November two, 2023. Source: DefiLlama
The trading volume information on Cetus is also incredibly remarkable. The complete cumulative trading volume on Cetus has reached $672 million from May 2023 to date. Last week, the common every day trading volume reached close to $ten million.
If you examine this amount to TVL, you will see that Cetus is reaching incredibly superior capital efficiency. So the task will certainly proceed to appeal to a massive amount of liquidity companies in the close to long term as nicely.
Cetus also demonstrates that the task is supported by several investment money. The task has efficiently raised seed capital with participation from OKX Ventures, Kucoin Ventures, Animoca Ventures, Coin98 Ventures and a lot of other investment money. The volume raised was not disclosed.
CETUS it is the native token of the task, with a complete provide of one billion tokens. CETUS can target and obtain xCETUS. xCETUS Key attributes will consist of:
- Administration: Hold xCETUS permits customers to participate in voting on how the protocol will work.
- Increased farming rewards: Users can use xCETUS to improve the rewards they obtain in the farming pools they participate in.
- Launchpad: Holding xCETUS permits customers to participate in IDOs organized by this exchange.
- LP Awards: xCETUS will be rewarded to liquidity companies based mostly on their degree of work and diligence in blocking liquidity.
Furthermore, to stop major fish with a lot of xCETUS from swiftly converting to CETUS and releasing it to the industry, the task establishes a conversion mechanism as follows:
- If you bet on CETUS, you will straight away obtain xCETUS at a one:one ratio.
- If you want to convert the held xCETUS to CETUS, you now have two choices: convert at the charge of one:.five with a 15 day time period or convert at the charge of one:one with a 180 day time period. .
Overall, Cetus is a fairly superior, nicely-constructed, oriented protocol, with effective capital raising and fairly superior tokenomics. Therefore, this will be a protocol that has the prospective to turn into a native AMM on Sui very similar to Uniswap on Ethereum, Trader Joe on Avalanche, or PancakeSwap on BNB Chain.
Ships Protocol is at this time the greatest lending protocol on Sui with above $24 million in complete assets locked in the protocol. Navi operates with a lending pool model, enabling customers to participate in the position of offering lending or borrowing liquidity in a decentralized method.
Some swimming pools on Navi from two November 2023. Source: Navi protocol
Basically, the protocol will work in accordance to the identical model as other lending pools (AAVE, Compound…): customers will mortgage loan the assets in the pool and based mostly on this they will borrow assets at a selected charge. Depending on the resource pool, Navi will set a proportional optimum lending threshold to make certain the stability of the protocol.
SHIPS is the native token of the protocol, at this time has the following applications:
- Bet: Users can stake NAVI to share a portion of the protocol’s costs.
- Administration: Users holding tokens can participate in governance and vote on protocol proposals.
- Paid: NAVI serves as a paid token on the protocol.
Currently, the protocol has attracted around $25.68 million, such as four big asset kinds: SUI, USDC, USDT, and WETH, of which USDC is nevertheless the asset accounting for the greatest percentage. The complete volume of loans on the protocol is $14.17 million, which represents a lot more than 50% of the complete TVL, demonstrating reasonably superior capital efficiency.
With the positive aspects of rapidly transaction processing and lower expense, NFT on Sui is also a incredibly prospective niche. Currently, a lot of distinct NFT marketplaces have produced on the network, such as: Clutchy, BlueMove, Hyperspace…
Fried it is at this time the industry with the highest volume of transactions on Sui Network, followed by BlueMove and Hyperspace respectively. Most of these tasks do not have tokens however, so you can experiment with them for a possibility to be retroactive in the close to long term.
Moreover, Sui Name Service it is a task seasoned and employed by a massive amount of folks, the cause comes from the tendency of owning domain names to obtain retroactivity from the task in the long term.
From the over information and examination, we can draw some observations about the Sui Network ecosystem in the 2nd half of 2023:
(one) The task has started off Pay a lot more focus to making and refining the ecosystem, launching incentive packages to accelerate the growth of the ecosystem. All indicators on Sui Network have enhanced considerably, displaying the original effectiveness of these incentive plans.
(two) Although there has been really powerful development not long ago, I feel this is just the starting original phaseto boot. Sui’s TVL enhanced a lot more than ten instancesHowever Total TVL is nevertheless just above $a hundred million, an incredibly modest amount in contrast to other ecosystems. Therefore, there is nevertheless a whole lot of space for Sui’s growth in the close to long term.
(three) The patterns on Sui are at a pretty primitive degree, focusing only on the most primary elements of DeFi. Sui will nevertheless have to have a lot more policies to appeal to developers, particularly in locations like NFT, GameFi, Perpetual Trading… simply because with lower fees and substantial processing velocity, these locations will have massive prospective.