What is SUI?

(Source:@SuiNetwork）

SUI is a Layer 1 blockchain platform developed by Mysten Labs, whose core technology is derived from the Diem blockchain developed by Meta (formerly Facebook). SUI uses the Move language, emphasizing high performance, scalability, and low transaction costs, and introduces an object-oriented data model to achieve parallel transaction processing.

Key factors driving the rise in SUI price

1. Rapid expansion of the ecosystem
   In early 2025, the total value locked (TVL) of SUI’s DeFi ecosystem surpassed $2 billion, mainly driven by protocols such as Suilend Protocol, NAVI Protocol, Cetus, Scallop Lend, and Aftermath Finance. Additionally, SUI’s native order book Deepbook V3 has accumulated a trading volume exceeding $1 billion, with its token DEEP reaching a market capitalization of $375 million, becoming an important component of the SUI ecosystem.
2. Strategic cooperation with large institutions
   SUI has established partnerships with financial giants such as VanEck, Grayscale, and Franklin Templeton. The SUI Trust launched by Grayscale manages assets exceeding $14 million, demonstrating institutional investors’ confidence in SUI. In addition, SUI collaborates with Ant Digital Technologies to promote the blockchainization of physical assets, further expanding its use cases.
3. Technological innovation and enhanced user experience
   SUI introduces innovative features such as Zero-Knowledge Login and Sponsored Transactions, reducing the entry barrier for novice users into the blockchain. These technologies allow users to create wallets through OAuth accounts (such as Google, Facebook) and have sponsors pay transaction fees, enhancing the overall user experience.

SUI’s Rise in the Field of DeFi

Sui’s speed, scalability, and developer-friendly environment enable it to compete with leading blockchain platforms such as Ethereum and Solana. With the changing regulatory environment, whether Sui can maintain this growth momentum remains a key question.

VanEck’s 2025 SUI price forecast

VanEck’s senior investment analyst Patrick Bush predicts that if the Token price of SUI rises to $16, its market cap is expected to exceed $610 billion, this estimate is based on their internal model calculations, with the price expected to increase 4.2 times. Based on the current price of about $4, this means that SUI’s potential increase will exceed 300%.

The VanEck team is optimistic about the outlook for SUI. In the field of Smart Contract Platforms (SCPs) where SUI is located, according to VanEck’s analysis, a 43% growth is expected by 2025, and the market size is expected to reach $1.1 trillion. This growth trend is in line with the expansion of the U.S. M2 money supply, which is undoubtedly a positive signal for blockchain projects like SUI. Currently, SUI holds a 5.5% market share in the SCP field and is expected to become a significant player in this area.

Risk Factors to Note

1. Token unlocking and potential selling pressure
   On January 1, 2025, SUI unlocked 82 million tokens, accounting for about 0.82% of the total supply, and on May 1, 2025, 74 million SUI tokens, approximately 2.28% of the circulating supply. Although the unlocking did not have a significant impact on the price, future unlocking events may bring selling pressure, and investors need to closely monitor relevant developments.
2. Fierce competition in the Layer 1 market
   SUI faces competition from other high-performance blockchains such as Solana and Aptos. Although SUI has advantages in technology and ecosystem, the intensifying market competition may affect its future growth potential.

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Summary

SUI showed strong growth momentum in 2025, benefiting from its technological innovation, ecosystem expansion, and cooperation with large institutions. Although facing market competition and potential selling pressure, the overall outlook is still optimistic. When considering investing in SUI, investors should continue to pay attention to the development of its ecosystem and market dynamics, and manage risks effectively.