On May 3, 2023, the Sui mainnet launched, marking the beginning of a transformative journey. Fast forward two years, and Sui has emerged as the standout performer among new blockchains this cycle, rivaling even the resurgence of Solana. With its governance token SUI now ranking sixth in fully diluted valuation (FDV) among non-stablecoin crypto assets, Sui's success begs the question: What propelled this rapid ascent?
As a deep participant in Sui's ecosystem, I’ll unravel the strategies and milestones that shaped its growth—from DeFi innovations to community-driven wealth effects—and explore why competitors struggled to keep pace.
DeFi Ecosystem: Building Momentum Step by Step
Sui currently ranks 9th in DeFi TVL (Total Value Locked) at $1.78 billion, surpassing Avalanche and Aptos. But this dominance wasn’t instant. Here’s how Sui turned early struggles into strengths:
1. Bullshark Quests: Fueling Early Adoption
From July 2023 onward, Mysten Labs (Sui’s developer) launched three waves of Bullshark Quests, distributing 15 million SUI tokens (worth ~$30M at peak) to users completing tasks. Unlike capital-intensive airdrops, rewards were egalitarian, attracting retail users and studios alike. This laid the groundwork for Sui’s "fair launch" reputation.
📌 Key Takeaway:
- Retail-friendly incentives built a broad user base.
- Early adopters (like myself) were drawn by accessible rewards.
2. Token Incentives & Price Stability
Sui pioneered yield subsidies for DeFi protocols, offering APYs exceeding 100% on stablecoins. While competitors (Aptos, Starknet) later copied this model, Sui’s timing was critical:
- Subsidies were deployed during low SUI prices (~$0.40).
- As prices rallied, whales held rather than dumped, creating a virtuous cycle of rising TVL and token value.
👉 Example: A 100% APY in 2023 could equate to 300%+ returns today—early sellers missed massive upside.
3. Developer Efficiency: The "Taiwan Advantage"
With Mysten Labs’ CEO Evan Cheng’s Taiwanese roots, Sui attracted a wave of high-efficiency Asian teams (e.g., Scallop, Typus). Compared to slower-moving Western devs, these squads delivered fast, reliable code—accelerating ecosystem growth.
Wealth Effect: Turning Users into Advocates
A chain thrives when it enriches its community. Sui mastered this by:
1. Learning from Solana’s Playbook
- Jito/Jupiter airdrops on Solana set a blueprint. Sui’s Scallop and Navi followed suit, though early payouts were modest (e.g., $50 SCA vs. Solana’s $1K+ drops).
- Lesson: Sui needed bigger wins to retain users.
2. Mysten Labs’ "Meta-Airdrops"
Sui’s developer self-launched projects with massive airdrops:
- Deepbook ($3B FDV): 10% to 101K addresses.
- Sui Name Service ($30M airdrop): 10% to community.
- Walrus ($1.4B raised): 4% to 120K addresses (~$120M value).
📌 Result: Users who interacted based on hints from founders (e.g., SuiNS clicks) reaped rewards—building trust and viral growth.
3. Tight Supply Control
Most Sui ecosystem tokens avoided Binance listings, keeping initial circulations low. High DeFi deposit rates further locked tokens, reducing sell pressure and amplifying price rallies.
Community & Culture: The Glue Holding It Together
1. Developer Loyalty
Sui Foundation’s exclusivity deals (funding for Sui-only builds) reduced "chain-hopping," fostering dedicated teams.
2. Cross-Protocol Synergy
Projects frequently airdropped to each other’s users (e.g., Bluefin’s Navi user drops), creating a collaborative ecosystem.
Conclusion: Why Sui Outshines Competitors
In just two years, Sui achieved what many chains couldn’t by:
✅ Pioneering fair, scalable DeFi incentives.
✅ Creating wealth effects through strategic airdrops.
✅ Cultivating a loyal, interconnected community.
While Solana remains the cycle’s leader, Sui’s trajectory suggests it’s poised to challenge the throne. The next chapter? Watch for SuiPlay0X1 (a Web3 gaming console) and deeper ecosystem integrations.
FAQ Section
Q: Is Sui better than Aptos?
A: Yes—by metrics (TVL, FDV) and community engagement. Aptos lacks Sui’s coordinated airdrop strategy.
Q: How to qualify for Sui airdrops?
A: Interact with Deepbook, SuiNS, Walrus, and track official Discord/Twitter for hints.
Q: Why did SUI price rebound so strongly?
A: Low initial circulation + yield incentives reduced sell pressure, fueling long-term demand.
👉 Explore Sui’s DeFi ecosystem
👉 Claim the latest Sui airdrops