The Investment Case for Sui: Where Scalable Design Meets Mainstream Adoption

The Investment Case for Sui: Where Scalable Design Meets Mainstream Adoption

Sui is a high-performance, scalable smart contract platform with a smooth user experience rivaling traditional apps. Thanks to its innovative architecture, Sui delivers fast speed and predictable, low gas fees, putting it in strong competition with the likes of Ethereum, Solana, and TON.

Powered by its native token SUI, the network handles gas fees, staking, and governance, much like electricity powers a city. Designed for everyday users and enterprises alike, Sui makes decentralized finance, gaming, and other blockchain-based apps effortlessly accessible.

While capital and headlines have been largely centered on Bitcoin, Sui has emerged as the quiet outperformer, surging nearly 200% over the past year and eclipsing other competitors. This breakout reflects the network’s growing developer adoption, rising user traction, and early signs of real institutional interest. But the key question now is, will momentum taper off, or is it just getting started?

Figure 1: Sui Outpaces Ethereum, Solana, and TON in a Breakout Year

 Source: 21Shares, Glassnode. Data from April 29, 2024 – April 28, 2025.

Six Reasons to Consider Sui in 2025

1. A Builder’s Chain: Sui’s Developer Activity Gains Traction

Developer activity on Sui has accelerated meaningfully, reflecting the growing confidence of builders in the network’s long-term potential. With a thriving core ecosystem and rising sub-ecosystem contributions, this momentum is laying the groundwork for sustained innovation, driving new use cases, deeper liquidity, and ultimately, stronger user growth.

Figure 2: Sui’s Ecosystem Sees Growing Developer Activity

Source: 21Shares, Artemis. Data from April 29, 2015 – April 28, 2025.

2. User Explosion: Sui Rockets to the Top of Blockchain Activity

Over the last year, Sui has seen an explosion in user adoption, now ranking as the third most active blockchain by daily users. The network’s user base has expanded dramatically, with new wallet creations jumping from around 150,000 per day to over one million and crucially, sustaining that pace. This massive influx highlights Sui’s strengthening appeal and early signs of network effects taking hold.

Figure 3: Sui’s Userbase is Rapidly Expanding

‍ Source: 21Shares, Artemis. Data from April 29, 2015 – April 28, 2025.

3. DeFi: Sui Emerges as a Powerhouse for On-Chain Finance

Sui’s DeFi ecosystem is gaining serious momentum, with daily DEX volumes recently surpassing $1 billion and cumulative trading activity now above $100 billion, a major milestone just two years post-launch. Total Value Locked (TVL) also hit a $2 billion all-time high and held firm throughout Q1 despite broad market volatility, cementing Sui’s strong user engagement and its role as a rising force in on-chain finance.

Figure 4: Sui’s DeFi Ecosystem Sees Sustained Surge in Trading Activity

Source: 21Shares, Artemis. Data from April 29, 2024 – April 28, 2025.

4. On-Chain Liquidity: Stablecoins Boost Sui’s Firepower

Sui’s stablecoin supply has climbed to all-time highs of nearly $1 billion, reflecting deep dry powder that’s primed to fuel ecosystem activity. Notably, over 10% of this supply now comes from enterprise-grade stablecoins like First Digital’s FDUSD and Ondo’s USDY, the latter backed by U.S. Treasuries. These implementations underscore growing institutional confidence in Sui, further strengthening its positioning as a serious player within the crypto ecosystem.

Figure 5: Dry Powder Builds on Sui with Institutional-Grade Stablecoins

Source: 21Shares, Artemis. Data from April 29, 2024 – April 28, 2025.

5. Idle No More: Sui is Unlocking Bitcoin’s True Potential

Bitcoin is crypto’s most valuable asset, yet over 99% of it remains idle. That’s beginning to shift on Sui. Already, nearly $250 million worth of Bitcoin has been deployed, representing over 10% of Sui’s TVL. Now, users can earn yield, lend, or borrow against their BTC directly on-chain. By unlocking real financial utility for Bitcoin, Sui may be laying the foundation for the asset’s next major evolution, with more than $1.8 trillion still waiting to be activated.

Figure 6: Only the Tip: Most Bitcoin Still Sits Idle

‍21Shares, Artemis. Data from April 29, 2024 – April 28, 2025.

6. Leveling Up: Sui is Bringing Web3 Gaming to the Masses

Sui is making strong strides in blockchain gaming, with its handheld device, SuiPlay0X1, surpassing 9,000 preorders and fully selling out ahead of launch. Its flagship game, Pebble City, has generated over 14 million transactions since February, highlighting strong early user engagement. With a rumored Pokémon integration on the horizon, Sui is positioning itself as a platform built for mass-market, consumer-first blockchain applications.

Sui's Valuation & Impact on a Traditional Portfolio

Sizing Up Sui: What’s a Realistic Valuation This Cycle?

Sui’s market cap now sits just above 5% of Ethereum’s, marking a 12.5x increase in relative valuation from this time last year. While Ethereum wrestles with near-term scaling limitations, alternative solutions are rapidly gaining ground. Solana has been the standout of this cycle so far, but Sui is set to capture similar momentum. If it captures just 15% of Ethereum’s valuation, the SUI token could nearly triple from current levels, to a price of around $9.97.

Figure 7: Projected SUI Price at Various % of ETH’s Market Cap

Source: 21Shares, Artemis. Data from April 29, 2024 – April 28, 2025.

Breaking Out: SUI Charts a Bullish Path Forward

SUI has recently broken above key moving averages, with the 50-day and 200-day now acting as support. While a short-term retest of the 200-day remains possible, the broader setup points to a long-term trend of continued capital appreciation. The last time these averages formed a golden cross in October, SUI surged 206% to a January peak of $5.35. A similar crossover could signal another very compelling entry point for long-term investors.

Figure 8: Momentum Returns: SUI Breaks Out Above Key Moving Averages

Source: 21Shares, Artemis. Data from April 29, 2024 – April 28, 2025.

Power of 1%: SUI’s Impact on Traditional Portfolios

Across all rebalancing frequencies, portfolios with just a 1% SUI exposure outperformed the benchmark on both absolute and risk-adjusted returns. Sharpe and Sortino ratios improved consistently, while volatility remained contained. Notably, portfolios with quarterly or annual rebalancing delivered the strongest upside with very promising drawdown control, highlighting SUI’s potential to enhance returns without increasing overall portfolio risk.

Figure 9: Simple Growth Portfolio with a  1% SUI Allocation Across Different Rebalancing Strategies

Source: 21Shares, Bloomberg and Yahoo Finance. Data from May 11, 2023 – April 28, 2025.  Benchmark Portfolio: 60% U.S. Equities & 40% U.S. Bonds.