Categories: DeFi

Sui becomes the fastest-growing DeFi platform

Sui becomes the fastest-growing DeFi platform

Sui has achieved significant numbers in just three months. These are in terms of total value locked (TVL) and volume. This has strengthened its growth as a DeFi platform. The TVL stands at 341% growth, while the volume has jumped by 229%. This has been termed a significant milestone for the network, along with the utility that the network provides.

Sui has shared the numbers with the community to show how it can continue supporting millions of users for services that exist outside of traditional mechanisms.

Sui has gained traction in the layer-1 blockchain industry based on two major factors: parallel processing and low gas fees. Parallel processing gives users the freedom to execute their transactions quickly. Thereby achieving finality quickly. A low gas fee means that users pay a lot less for the token supply on every transaction. This brings up a minimal amount, which users don’t mind shedding away.

The industries whose projects have debuted on the network thus far include but are not limited to, lending, decentralized exchanges, and liquid staking. In the first six months since the introduction of its mainnet network, the majority of achievements have been made.

TVL growth has numbers from July 17, 2023, to October 17, 2023. DeFiLLama has presented them to show that the figure has increased from $13.08 million to $57.69 million. This makes up for a 341% increase.

Volume activity for DeFi is stronger as well. The numbers reflect a rise from $1.77 million to $5.84 million as a seven-day average. The volume growth is 229%. These numbers are from July 16, 2023, and October 16, 2023. A sharp increase in Sui volume became evident on September 24, 2023. That is the point when the graph can be seen making a jump right on to the next reporting date of October 1, 2023.

Three important factors are driving Sui’s growth:

  • Individual engagement
  • Institutional engagement
  • Support for the builders of DeFi

Sui’s market-fit products have elevated the growth story. The grant program of the Sui Foundation backs a lot of projects. Builders have reported that they have truly leveraged the program in their favor, demonstrating the value that the ecosystem brings with it.

It has been cited as a key reason for the growth of the ecosystem and the Sui network.

However, DeFi builders continue to grow on Sui even at a time when they do not have grants on the table. Meaning some factors build on the strength at a time when the grant program is restricted to select builders.

TVL and DeFi activities continue to grow on the Sui network, creating more opportunities for builders and users. It is easier for them to onboard innovative DeFi activities with a long-term commitment that there will be no drop in the offerings.

David Cox: David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.