Sui TVL Soars, Which DeFi Projects Should You Pay Attention To?

Overview: Sui's Milestone Achievement in TVL Rankings

Sui is a Layer 1 blockchain developed by Mysten Labs that aims to host general-purpose applications while optimizing for security, scalability, and sustainability. Since mainnet launch in May 2023, the Sui blockchain has achieved remarkable growth in the DeFi sector. In early 2024, the network amassed over $402 million in Total Value Locked (TVL), securing a position in the Top 10 chains by TVL according to DeFiLlama data. This milestone underscores the growing prominence of the Sui blockchain in the competitive Layer 1 landscape. The achievement reflects not only increased capital inflow but also growing developer and user confidence in Sui's technical infrastructure and ecosystem potential.

Reasons Behind SUI Price Rally: High Rewards and Ecosystem Events

The SUI token's price appreciation can be attributed to several market-wide and chain-specific factors, with two key drivers standing out prominently. Firstly, the Annual Percentage Yield (APY) for supplying SUI to major lending protocols exceeded 20%, creating compelling incentives for token holders to lock up their assets and earn yields. This mechanism effectively reduced the circulating supply while simultaneously increasing demand, consequently driving upward price pressure. The high yield opportunities attracted both retail and institutional participants seeking attractive returns in the DeFi space.

Secondly, Sui announced its inaugural ecosystem conference, Sui Basecamp, scheduled for April 2024 in Paris, France. This landmark event generated significant enthusiasm and attention around Sui's expanding user community and developer ecosystem. The conference served as a catalyst for bullish sentiment, guiding investors to recognize Sui's long-term potential and strategic vision. The combination of lucrative staking rewards and positive ecosystem developments created a favorable environment for SUI's price rally, demonstrating how fundamental value drivers can translate into market performance.

What Sets Sui Apart: An Innovative Chain in the Web3 Landscape

Sui's architectural innovation distinguishes it significantly from other prominent blockchain ecosystems. The network adopts a pioneering "object-centric" architecture, representing a fundamental departure from the account-based model prevalent in blockchains like Ethereum. This design philosophy, expressed through the Move programming language, enhances asset abstraction and composability, thereby improving smart contract security and developer productivity. The object-centric approach allows for more granular control over digital assets and enables more efficient transaction processing.

Beyond architectural innovation, Sui demonstrates superior scalability compared to other Layer 1 blockchains through its implementation of "parallel execution" technology. In late 2023, the network achieved an impressive throughput of 270,000 transactions per second (TPS), showcasing its capacity to handle massive transaction volumes. This performance metric positions Sui as one of the most scalable blockchain networks currently operational.

Several additional features underscore Sui's user-centric design philosophy:

• zkLogin: Sui enables users to create on-chain accounts using Web2 authentication providers such as Google, GitHub, and Apple. This innovation significantly lowers the barrier to entry for users transitioning from Web2 to Web3 environments, eliminating the complexity of managing private keys for newcomers.

• Sponsored Transactions: The network allows decentralized applications (dApps) to function as "gas stations" that sponsor and cover users' transaction fees. This feature further streamlines the user experience and removes friction from blockchain interactions, making Web3 applications more accessible to mainstream users.

Parallel vs. Sequential Execution: Sui's Technical Advantage

Parallel execution represents a fundamental technological advancement in blockchain architecture, referring to the capability to process multiple transactions concurrently across a distributed network. Under this innovative execution model, transactions are distributed across multiple processors, resulting in dramatically increased throughput and significantly reduced latency. Since transactions no longer queue sequentially or block each other, parallel execution networks can accommodate usage spikes and high-demand periods far more efficiently than traditional sequential execution models.

The performance differential is substantial when comparing parallel and sequential architectures. While the Ethereum Virtual Machine (EVM) processes approximately 20-30 transactions per second under its sequential model, Sui's parallel execution framework can handle upwards of 200,000 TPS. This represents nearly a 10,000x improvement in theoretical throughput capacity. As Web3 adoption accelerates and user bases expand, parallel execution architectures like Sui's become increasingly critical for supporting the exponential growth in transaction demand. The technology positions Sui to serve as infrastructure for next-generation decentralized applications requiring high performance and scalability.

Top DeFi Protocols on the Sui Ecosystem

Scallop Lend: Comprehensive DeFi Services Platform

Scallop Lend offers an integrated suite of DeFi services including lending, borrowing, asset management, and automated market making (AMM), all accessible through a unified platform interface. Since launching on Sui's mainnet, Scallop has experienced exponential adoption, with Total Value Locked recently surging to $88 million, establishing it as the leading DeFi application on the Sui network. This rapid growth trajectory mirrors Sui's capacity to support sophisticated DeFi innovations and attract substantial capital deployment.

Scallop's impressive metrics demonstrate its market traction: the protocol has facilitated over $4.2 billion in cumulative lending and borrowing volume, alongside $205 million in flash loan transactions. The platform provides competitive interest rates for lenders while maintaining low borrowing costs, creating an attractive value proposition for both sides of the lending market. Additionally, Scallop offers developer tools including SDKs and sCoins for zero-cost flash loans, fostering ecosystem development. The protocol distributes its native SCA token to reward early adopters and active participants, aligning incentives across the community.

Cetus Protocol: Liquidity Infrastructure for Sui and Aptos

Cetus Protocol is developing a decentralized exchange (DEX) infrastructure spanning the Sui and Aptos blockchains, with a core mission of providing "Liquidity as a Service" through its concentrated liquidity market maker (CLMM) model. Beyond facilitating standard trading operations, Cetus emphasizes composability, enabling developers to build sophisticated products such as liquidity vaults, leveraged yield farming strategies, and derivatives instruments on top of the Cetus infrastructure. This composable architecture positions Cetus as foundational DeFi infrastructure rather than merely an isolated application.

As the only protocol among Sui's top three DeFi applications to have launched a native governance token, Cetus Protocol and its CETUS token represent significant opportunities in the evolving Sui ecosystem. The protocol implements a dual-token economic model utilizing both CETUS and xCETUS to incentivize active participation and align stakeholder interests with protocol growth. Token holders can stake CETUS to receive xCETUS, which grants governance rights and a share of protocol revenues, creating sustainable value accrual mechanisms.

NAVI Protocol: Advanced Lending and Leverage Solutions

NAVI Protocol delivers over-collateralized lending and borrowing services supporting major assets including SUI, USDC, USDT, wETH, and wBTC. The protocol distinguishes itself through innovative features such as Automatic Leverage Vaults and Isolation Mode, which enable users to leverage their asset positions and deploy sophisticated trading strategies while implementing robust risk management frameworks. These advanced features cater to both conservative lenders seeking yield and experienced traders pursuing leveraged opportunities.

NAVI Protocol has demonstrated strong market adoption, with Total Value Locked exceeding $116 million and borrowed assets reaching $43 million. These metrics indicate healthy utilization rates and growing confidence in the protocol's security and functionality. The substantial TVL positions NAVI as a cornerstone lending protocol within the Sui DeFi ecosystem, providing essential liquidity infrastructure for the broader network.

KriyaDEX: On-Chain Derivatives Trading Platform

KriyaDEX represents an innovative decentralized exchange built natively on the Sui blockchain, offering non-custodial, orderbook-based trading infrastructure. As a fully decentralized platform, KriyaDEX enables users to trade perpetual and options contracts in a secure, peer-to-peer manner without intermediaries. All order matching occurs on-chain, ensuring complete transparency and eliminating counterparty risk associated with centralized platforms.

Kriya's current product suite includes an integrated cross-chain bridge, an automated market maker (AMM) swap interface, and a fully on-chain orderbook supporting 20x leveraged perpetual trading. In mid-January 2024, KriyaDEX announced an incentive program distributing 200,000 KRIYA tokens over 20 days, with daily reward pools of 10,000 KRIYA allocated to top traders by volume. This aggressive incentive structure suggests potential plans for native token launch and ecosystem expansion, positioning KriyaDEX as an emerging player in Sui's derivatives trading landscape.

Security Considerations for Sui DeFi Participation

When engaging with DeFi protocols on the Sui network, users should prioritize security through the use of reputable, mainstream Web3 wallets that support the Sui blockchain. Leading crypto wallets typically support over 100 mainnets and 250,000+ cryptocurrencies, including Sui and its native SUI token. These wallets enable users to securely send, receive, and manage Sui-based crypto assets while maintaining control of private keys.

Most established Web3 wallets feature integrated DApp browsers that allow users to interact directly with Sui ecosystem projects through secure, verified connections. Users should always verify they are connecting to legitimate protocol websites and never share private keys or seed phrases with any third party. Implementing hardware wallet integration for larger holdings and enabling multi-factor authentication where available further enhances security posture when participating in Sui's DeFi ecosystem.

Future Outlook: Sui's Potential in the Current Market Cycle

Since its mainnet launch in May 2023, Sui initially attracted significant market anticipation, though attention waned during the subsequent six months due to nascent ecosystem development. However, with Sui's recent entry into the top 10 blockchain ecosystems by TVL, market participants are reassessing the network's long-term potential and likely performance during the current bull market cycle.

Sui's most promising opportunities exist within the DeFi, GameFi, and Real World Asset (RWA) tokenization sectors. The network's exceptional transaction throughput of 270,000 TPS positions it as ideally suited to accommodate the high user volumes and transaction frequencies characteristic of gaming applications and complex financial operations. This scalability advantage becomes increasingly critical as blockchain applications approach mainstream adoption levels.

Furthermore, Sui represents one of only two blockchain networks utilizing the Move programming language, which was specifically architected for deploying finance-related smart contracts with enhanced security guarantees. As more developers recognize Sui's technical advantages and begin building on the platform, the ecosystem should experience accelerated project launches and innovation. This virtuous cycle of development activity, user adoption, and capital inflow typically drives appreciation in native token valuations during favorable market conditions.

Strategic Partnerships: AI Integration and Developer Tools

In terms of institutional partnerships, Mysten Labs recently announced collaboration with Alibaba Cloud and ChainIDE to develop artificial intelligence tools aimed at simplifying Move code development. These AI-powered development tools will enable programmers to write Move smart contracts using natural language processing, translating intuitive prompts into functional code. This innovation promises to dramatically enhance productivity for experienced Move developers while simultaneously reducing technical barriers for newcomers to the ecosystem.

The collaboration between Mysten Labs and major technology providers like Alibaba Cloud signals growing institutional interest in Sui's technology stack and long-term viability. The integration of artificial intelligence capabilities with blockchain infrastructure represents a forward-looking approach that could accelerate Sui ecosystem development. As AI-assisted development tools mature and become widely adopted, they may catalyze a new wave of sophisticated applications built on Sui, propelling the ecosystem toward its next phase of growth and mainstream adoption. This convergence of cutting-edge technologies positions Sui uniquely within the competitive Layer 1 landscape.

FAQ

What is Sui blockchain? What are its advantages compared to public chains like Ethereum and Solana?

Sui is an emerging blockchain utilizing sharding technology to enhance transaction speed and scalability. Compared to Ethereum and Solana, Sui offers superior throughput, lower latency, and better horizontal scaling capabilities, making it more efficient for high-frequency transactions and user expansion.

What is TVL (Total Value Locked) in DeFi projects and why has Sui's TVL grown rapidly recently?

TVL represents total value locked in DeFi protocols. Sui's TVL surged due to improved network performance, growing ecosystem adoption, innovative projects launching, and increased investor confidence in its scalability and user-friendly infrastructure.

Which mainstream DeFi projects in the Sui ecosystem deserve attention, such as lending, decentralized exchanges, and liquidity mining?

Key Sui DeFi projects include USDC for stable payments, Haedal for liquid staking with ~2.5% annual yields, and various lending and DEX protocols. These projects drive Sui's TVL growth and offer diverse yield opportunities across the ecosystem.

How to participate in Sui DeFi projects? What wallets and tools are needed?

Use Suiet or Sui Wallet to participate in Sui DeFi projects. Ensure you hold SUI tokens for transactions and interactions. These wallets support token management, NFT operations, and dApp connectivity for seamless DeFi engagement.

What risks should I pay attention to when investing in Sui DeFi projects?

Key risks include smart contract vulnerabilities, centralized exchange exploits, and user operational errors. These may result in fund losses. Exercise caution and due diligence when participating in Sui DeFi.

Sui的交易速度和费用相比其他公链有什么优势？

Sui采用独特的Narwhal/Bullshark共识机制，简单转账可在亚秒级完成，理论吞吐量超100,000 TPS，交易费用极低，相比其他主流公链具有明显优势。

Sui生态DeFi项目的未来发展前景如何？

Sui生态DeFi项目前景广阔。随着跨链桥、原生USDC上线及DeepBook V3等关键功能推出，生态活跃度持续提升。预计2026年交易额将大幅增长，DeFi项目数量和用户基数双双扩大，Sui有望成为主流DeFi生态。