13 December 2024

Aren’t we amazing? Just one week after Bitcoin passed $100,000, we are waiting for the next big leg up. The following image sums it up.

Well, what will the next 10 days bring? Surely another strong rally with the US CPI coming in line with expectations and US likely to cut interest rates next week? Let us continue to dream.

Today, we look at another project that dares to dream. Sui. Its already among the top 20 crypto assets and it has a fascinating story. Let’s dive in.

Top-3 stories of the week:

1

2

3

The newsletter is put together by Giottus Crypto Platform. You can read all the previous issues of Cryptogram here.

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WEEKLY MACROS

• Total crypto market cap - $3.59 trillion - UNCHANGED   

• Bitcoin price - $100,079 - UP 2.1%

• The dollar index (DXY) - 107.05 - UP 1.2%

• Bitcoin Dominance - 56.55% -  UP 2.2%

• Crypto Fear and Greed Index - 76 - Market is in Extreme Greed

THE HOT TAKE

Drivers behind Sui’s impressive run

The Sui blockchain is making waves in the crypto world! Yesterday, its native token, SUI, skyrocketed by an impressive 25%, hitting $4.8. With a market capitalization now at $13 billion and trading volume exceeding $4 billion, Sui has firmly captured the spotlight.

SUI has experienced a remarkable 5x price increase this year, driven by strong market momentum and the ongoing bull market. This surge positions SUI to potentially narrow the gap with top Layer 1 competitors. In November, the token saw a significant 118% gain. All moving averages indicate a firmly bullish trend, reinforcing the ongoing upward momentum.

So how did Mysten labs silently build a powerhorse?

• Expert Founders: Mysten Labs was founded in 2021 by former Meta executives who worked on the Diem project, bringing deep expertise in blockchain and scalable systems.

• Building the Foundation: The team created the Sui blockchain, a fast and secure Layer 1 network designed to make decentralized apps (dApps) easier to build and use.

• Developer Tools: Mysten Labs launched key tools like the Sui Wallet, Sui Explorer, and Sui Name Service (SuiNS) to make the blockchain accessible and user-friendly.

• Fostering Community: They handed control of SuiNS to the community through the $NS token and supported third-party tools like SuiVision and Suiscan to encourage decentralization.

What sets Sui apart from other Layer 1 blockchains:

1. Object-Centric Data Model

Sui’s innovation lies in its unique object-centric data model, which is different from the usual token-focused designs in blockchain. Here, digital assets are treated as flexible objects that can grow and change over time by adding information, rules, and permissions. This approach is especially useful for developers, as it makes building complex digital products easier.

2. Parallel Transaction Execution

One of the biggest challenges in blockchain technology has always been scalability—handling large numbers of transactions quickly and efficiently. Sui solves this problem with its innovative parallel transaction execution system. Unlike traditional blockchains that process transactions one at a time, Sui can handle multiple transactions simultaneously. This approach significantly increases the number of transactions the network can handle at once, known as throughput.

3. Programmable Transaction Blocks (PTBs)

Another standout feature is Programmable Transaction Blocks (PTBs). These allow developers to bundle multiple transactions into a single, composable unit, streamlining complex workflows.

For example, a multi-step process like minting, transferring, and customizing an NFT can now happen in one seamless operation, reducing friction for both developers and end-users.

4. Sponsored Transactions

Sui is also designed with accessibility in mind. One of its key innovations is sponsored transactions, where users don’t have to pay visible gas fees. Instead, applications or third parties can cover these costs, making the user experience as smooth as interacting with traditional web platforms.

All these advancements led to a thriving developer community

Sui has emerged as a leader in developer growth during the first half of 2024, according to the latest data from Electric Capital. The platform boasts the largest and fastest-growing community of Move developers, reflecting its appeal among blockchain creators.

In first half of 2024, Sui experienced an impressive 219% increase in monthly active developers, maintaining nearly 1,400 active contributors throughout June. This rapid growth underscores the strong interest and momentum in Move development and highlights Sui's role as a key player in fostering innovation within the blockchain space.

Establishing Strong and Strategic Partnerships

The Sui ecosystem has strategically partnered with various organizations to enhance its blockchain capabilities and expand its reach.

• Oracle Red Bull Racing: Sui became the Official Blockchain Partner of Oracle Red Bull Racing, aiming to deliver immersive digital experiences to Formula 1 fans worldwide.

• First Digital Labs: Selected Sui as its first non-Ethereum platform for the FDUSD stablecoin, providing DeFi users with a stable value store.

• BytePlus: The technology arm of ByteDance partnered with Sui to bring advanced data warehousing and content tools to Web3 gaming and socialFi projects.

• Google Cloud: Collaborated with Sui to enhance security, scalability, and developer tools across Web3 and AI-powered applications on the Sui Network.

• Franklin Templeton Digital Assets: Entered into a strategic partnership with Sui to support ecosystem builders and deploy novel technologies leveraging the Sui blockchain protocol.

• Phantom and Backpack Wallet: Last week, both Phantom and Backpack wallet integrated Sui to enable efficient and user-friendly wallet functionalities, boosting decentralized exchange volumes.

• MEXC: This week, trading platform MEXC announced the launch of the lending protocol Suilend (SEND) on its platform.

 The Road Ahead for Sui

With a strong foundation, technical innovations, and a strategic vision, Sui is well-positioned to capture a larger share of the Layer 1 market. Its ability to consistently engage a global community, attract developers, and form strategic partnerships suggests continued momentum.

From a technical view, SUI’s price discovery process has established new support levels, with $3.90 emerging as a critical zone of buyer interest. On the upside, $4.90 represents a major resistance level that bulls need to break for further price advancement. Trading patterns reveal notable geographic trends, with heightened activity during Asian market hours. This global participation has contributed to consistent trading volumes across different time zones, further bolstering the token’s performance.

However, only 29% of the total supply is currently in circulation with estimated 81.91 million SUI tokens (0.82% of total supply) scheduled for release in Jan, 2025. Additional tokens unlocks are scheduled for regular vesting over next 6 years. As more tokens are unlocked, the circulating supply grows. If demand doesn't rise proportionally, this could lead to downward pressure on the price, potentially discouraging new investors and developers.

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If you have any questions or feedback for us, write to us at [email protected]. You can check out the previous issues here.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.