Sui (SUI): A Layer-1 Blockchain Emphasizing Scalability for Its Decentralized Applications (dApps)

Boasting a 1300% increase in its price, the SUI token is one of the most talked about crypto assets of 2024. Sui (SUI) is a layer-1 blockchain that aims to onboard the next billion users in Web3.

Boasting a 1300% price increase, SUI is one of the most talked about crypto assets of 2024. But what exactly is SUI, and how does it work? In this article, we’ll learn about SUI, its history, and its price history.

What is SUI?

Sui (SUI) is a layer-1 blockchain that aims to onboard the next billion users in Web3. The blockchain claims to be a ‘Scalable infrastructure that’s fast, secure, and affordable’.

Sui is a platform that emphasizes scalability for its decentralized applications (dApps) and shortens the time it takes for smart contracts to execute. Several architectural ideas set SUI apart from other blockchains like Ethereum, Solana, and Polkadot. These consist of the Move smart contract programming language, parallel transaction processing, and the Sui consensus motor.

Validators can stake the SUI cryptocurrency, the platform’s native cryptocurrency, to verify transactions using Sui’s delegated proof of stake (dPoS) network. Additionally, SUI connects the platform by serving as a means of trade, executing bespoke programs, and rewarding users who contribute to its advancement.

Now that we know what is SUI used for, let’s discuss its history and background.

History and Background

Sui debuted its incentive-based testnet in August 2022, and its mainnet became active on May 3, 2023.

A group of former top officials from Meta's now-defunct Novi digital wallet initiative are developing the blockchain through their company Mysten Labs.

Mysten Labs secured $300 million in a Series B fundraising round to create the blockchain in September 2022. Well-known venture investors including Circle, Binance Labs, Lightspeed Venture Partners, a16z, and NCSoft support the business.

The Sui Foundation is a stand-alone entity that aids the community and its initiatives. Its goal is to accelerate the worldwide adoption of the Sui blockchain in order to enroll the next billion people in Web3.

How does SUI work?

Compared to other blockchains, SUI has a distinct consensus and transaction processing technique. Every node in the network must add transactions to the blockchain in a sequential manner according to conventional blockchain technology. This approach, known as vertical scaling, makes it harder to boost the blockchain's scalability.

Many transactions are inherently unrelated to one another, which SUI takes into account. It merely looks at the pertinent piece of data rather than confirming the full chain.

Furthermore, it uses an object-centric paradigm to do this effectively, which centers the chain data storage around things rather than accounts. Because of this innovative kind of data storage, SUI nodes can validate uncorrelated transaction flows independently and separately, as opposed to needing to arrange every transaction in the conventional blockchain paradigm.

The complete transaction broadcasting and validation process starts with a sender broadcasting the transaction to all validators. Following this, validators verify the transaction for validity, analyze the stake of the validators, and send their weighted votes based on the stake. After gathering a Byzantine-resistant majority, the sender broadcasts the outcome to validators in the form of a certificate.

As a result, SUI is likely able to achieve transaction rates of more than 100,000 transactions per second.

Price History of SUI

The SUI cryptocurrency registered its all-time low on Oct. 19, 0.3643, and since then the token has experienced an increase of 1000%, registering an all-time high of $5.35 on Jan 06, 2025. At the time of writing, the SUI token is trading at $3.76, with a market cap of $11.32 billion and a 24-hour trading volume of $921.68 million.

The SUI token price has seen a formation of higher highs and higher lows on the chart, which indicates a bullish continuation. For long-term buyers, it may be a good time to wait for the 0.5 and 0.618 fibs, also known as the golden fib zone, as it is also correlated with a major support zone of the SUI token.

It should be noted that this price analysis can be wrong as the crypto market is also heavily dependent on fundamental factors and you should do research before investing in this token.