SUI is the native token of the Sui Network, which was developed by Mysten Labs, founded by former Meta (Facebook) engineers, and officially launched its mainnet on May 3, 2023. As a Layer 1 blockchain, Sui’s core technology is derived from the Diem project, focusing on high throughput, low latency, and horizontal scalability, with a theoretical throughput of over 100,000 TPS, allowing simple transactions to be confirmed in sub-second time.
Technical Architecture Highlights
- Move Language and Object Model: Adopts the Rust version of the Move smart contract language, treating on-chain assets as “objects,” supporting parallel processing of non-dependent transactions, significantly improving efficiency;
- Dual-layer consensus mechanism: Narwhal/Bullshark handles transaction broadcasting and sorting, with the addition of the Mysticeti engine in 2024 to further optimize latency;
- User Experience Innovation: The zkLogin feature allows users to log in to DApps using Web2 accounts such as Google, lowering the entry barrier.
Token Economic Model
The total supply of SUI is fixed at 10 billion pieces, with the distribution ratio as follows:
- 50% Community Reserve: Ecosystem Incentives and Validator Support;
- 20% Core Contributors: Team and advisors, released according to the lock-up schedule;
- 14% investors: including institutions such as a16z, YZi Labs, etc.;
- 16% remaining belongs to Mysten Labs and early testers.
As of May 2025, the circulating supply is approximately 3.3 billion coins (accounting for one-third of the total supply), with an annualized staking yield of 5%–10%.
SUI 2025 Price Prediction: Analysis of Institutional and Market Perspectives
Conservative Scenario: $5.00 – $6.50
Based on the steady expansion of the DeFi ecosystem. If the total value locked (TVL) continues the current growth trend (exceeding $2 billion by early 2025), coupled with the expansion of stablecoin scale, SUI may return to its historical peak range.
Neutral Scenario: $6.77 – $8.85
Institutions generally hold this expectation. The Cryptopolitan model predicts a year-end price of $6.77, while CoinCodex looks towards $8.85. Key support comes from incremental funds brought in by compliant products such as the Grayscale Trust.
Bullish Scenario: $8.00 – $16.00
Depends on the strength of three major catalysts:
- Cooperation with leading IPs like Pokémon has landed, driving a surge in GameFi users;
- ETF approval expectations, VanEck analysts pointed out that if the price rises to $16, the market capitalization will exceed $61 billion;
- The storage project Walrus consumes SUI on a large scale, creating a deflationary effect.
Key Variables Affecting Price
Positive Factors
- Ecological Expansion: The DeFi protocols NAVI and Cetus have both surpassed 450 million USD in TVL, and the native order book Deepbook has exceeded 1 billion USD in trading volume;
- Institutional Entry: VanEck and Franklin Templeton strategic partnership, Grayscale SUI Trust AUM exceeds $14 million;
- Deflationary mechanism: storage fund and object deletion fee refund model, long-term balance of gas costs.
Risk Factors
- Token unlock selling pressure: 74 million tokens will be unlocked in May 2025 (accounting for 2.28% of the circulating supply), potential selling pressure should be monitored;
- Market competition is heating up: Solana, Aptos, and other public chains in the same track are diverting developers and users;
- Centralization Controversy: About 84% of the staked tokens are controlled by the founders, raising concerns about transparency.
Conclusion: Coexistence of Value Potential and Risks
SUI has become a dark horse in the Layer 1 field due to technological innovation and rapid ecological growth. If it breaks through the key resistance of $8 in 2025, it may initiate a new growth cycle. However, investors need to closely monitor the token unlocking rhythm and the controversies surrounding centralized governance, as these factors may exacerbate short-term volatility. In the medium to long term, its price ceiling will depend on the balance between actual user scale and institutional product penetration.
Author:
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