Sui Ecosystem Development and Token Release Analysis

It has been more than 40 days since the launch of the Sui public chain. As one of the representative projects of the Move public chain, Sui represents a different technical route from Ethereum L2. Since the launch of the project, there has been a lot of discussion, especially the token issuance method and release model. Some people believe that it may follow in the footsteps of ICP, and some people compare it with the new public chain in 2021.

This article will analyze the current development status of Sui from the aspects of on-chain data, ecological project development, and token release.

1. On-chain Data Analysis

1. Total Locked Amount ( TVL )

As of June 13, Sui's TVL was $15.22 million, of which DEX Cetus accounted for more than 60%. Ranked 54th among all public chains and layer 2 networks. TVL, which peaked at $36.01 million, has now fallen by more than 50%.

In contrast, another Move-based representative project, Aptos, currently has a TVL of $42.11 million, with a historical high of about $65 million, ranking 34th.

! Sui Ecological Data and Token Release Analysis

2. volume

The highest daily trading volume of DEXs on Sui was on May 10, with more than $19 million. Since June, the daily trading volume has mostly been between 3 million and 6 million, and the trading activity is low.

! Sui Ecological Data and Token Release Analysis

3. Network Activity

Since its launch, Sui has had a total of 16.53 million transactions, an average TPS of 3, a total of 850,000 active addresses, and 104 active nodes. The highest TPS 26 appeared on May 12 on the day of the Turbos IDO.

The maximum number of daily active addresses is 130,000 (5 ) on May 20, mainly due to Cetus' opening of permissionless pools and meme project airdrops. Usually there are less than 10,000 active addresses per day.

Compared to Ethereum L2, Sui's actual TPS is still at a low level.

! Sui Ecological Data and Token Release Analysis

4. cross-chain bridges

Currently, there are three cross-chain bridges supporting Sui: Wormhole, kriya.finance, and WELLDONE, but there is a lack of specific cross-chain data.

2. Ecological Project Development

The official SUI catalogue includes 66 projects, most of which are still in beta. The projects that have been put into operation and issued tokens have performed poorly, the top DEXs have all been broken, and the social platform SUIA has fallen by nearly 82%. Suipad performed better, mainly due to lower IDO pricing.

Due to limited users and funds, some projects like Abyss World choose to conduct IDO on Polygon instead of Sui network.

! Sui Ecological Data and Token Release Analysis

3. Token release and demand analysis

The total amount of Sui tokens is 10 billion, and the initial circulation is 528 million, accounting for 5.28%.

There are two types of releases from May to October 2023:

1. IEO token release: about 34.61 million tokens per month
2. Incentive release of staking nodes: 33.3 million per month for the first three months and 30 million per month for the fourth to sixth months

Based on comprehensive calculations, the average monthly release of 67.94 million (0.67% ) in the first three months, and the average monthly release of 64.61 million (0.64% ) in the 4th to 6th months.

November 2023 will usher in large-scale unlocking, with more than 1 billion unlocked in a single day, and the circulation will be doubled.

On the demand side, the current trading is quiet, with few users, and there is no obvious demand for SUI Token in the short term.

! Sui Ecological Data and Token Release Analysis

! Sui Ecological Data and Token Release Analysis

! Sui Ecological Data and Token Release Analysis

! Sui Ecological Data and Token Release Analysis

! Sui Ecological Data and Token Release Analysis

Fourth, compared with the Aptos token release model

The total amount of Aptos tokens is 1 billion ( excluding staking incentive ), and the initial circulation is 130 million (13% ).

In the first year of launch, 4.54 million (0.45% ) will be released every month. From the second year, the core contributors and investors will be released, with 20 million (2% released per month for 13-18 months), and 6.75 million per month for 19-50 months(0.67%).

For the staking incentive part, the current network stakes 86% of the tokens, and about 4.9 million (0.49% ) are released every month.

In comparison, it can be seen that Sui and Aptos are both low-circulation and high-inflation tokens, but the initial circulation of Sui is lower, the early release pressure is greater, and a one-time large-scale release mode is adopted.

! Sui Ecological Data and Token Release Analysis

! Sui Ecological Data and Token Release Analysis

! Sui Ecological Data and Token Release Analysis

V. Conclusion

Sui is still in the cold start stage, with insufficient users and trading volume, and needs to continue to attract users and capital inflows.

At present, the team pays more attention to technology construction and has not yet launched large-scale user incentives. In the context of the bear market environment and the development of Ethereum's layer 2, Sui faces challenges in attracting funds and users.

From the perspective of the token economic model, Sui's release pressure is concentrated in the first year. In the case of insufficient demand, such a large supply of tokens may put greater selling pressure on SUI tokens.