Sui DeFi: Driving Growth and Momentum in 2024

This past year marked a transformative era in Sui DeFi. Institutional players made bold moves, native stablecoins flourished, and critical infrastructure advanced, helping Sui emerge as a prime destination for DeFi power users and institutional finance. The network’s Total Value Locked (TVL) grew significantly, starting the year at less than $250 million and surging to $1.75 billion by December. From a variety of native stablecoin offerings and Bitcoin-based assets to a major evolution in DeepBook, Sui's DeFi progress highlights its role as a hub for innovation.

Institutional finance on Sui

Sui has become a focal point for institutional interest, marked by significant developments from major players like VanEck, Franklin Templeton, and Grayscale Investments. VanEck introduced a regulated financial product backed by SUI, enabling millions of traditional investors to gain exposure to the Sui ecosystem. Franklin Templeton partnered with Sui to support ecosystem builders and deploy cutting-edge blockchain solutions. Grayscale Investments, the world’s largest provider of digital asset products, launched the Grayscale SUI Trust, offering accredited investors an opportunity to participate in Sui’s growth.

These moves point to a broader trend of institutional adoption. Sui’s innovative architecture, supporting lightning fast transactions and consistently low gas fees, make it an appealing choice for traditional finance entities looking to integrate blockchain products and technology.

Stablecoins: A foundation for DeFi growth

At the start of the year, Sui had no native stablecoins, but fast forward to today, and there are four: USDC, AUSD, FDUSD, and USDY. Each played a vital role in driving liquidity and enabling seamless financial operations across the network.

This rapid growth in stablecoins offerings and liquidity is a clear indicator of Sui’s maturation as a DeFi ecosystem. With some of the most trusted stablecoin issuers now on Sui, the ecosystem has a solid foundation for more mature and complex DeFi apps and institutional-grade products.

Unlocking Bitcoin liquidity

Sui also made strides in bringing Bitcoin liquidity into its ecosystem. SatLayer, in collaboration with Babylon, enabled the integration of Bitcoin restaking through Lombard’s LBTC, the largest liquid staking provider on Babylon’s platform. This development unlocks BTC liquidity for apps on Sui, giving users access to a promising source of new assets.

Wallets: Big names join the fold

In the last month alone, two prominent wallet providers, Phantom and Backpack, announced support for Sui. These integrations mark a significant milestone in accessibility, allowing millions of existing wallet users to seamlessly interact with Sui’s DeFi ecosystem from the comfort of an already familiar wallet.

DeepBook V3 and DEEP

A major highlight of the year has been the launch of DeepBook V3, along with the introduction of the DEEP token. DeepBook, Sui’s native onchain order book, has seen tremendous growth, with cumulative trading volume nearing $1 billion as of mid-December. The incentives introduced in DeepBook V3 not only encourage more active participation but also have streamlined liquidity for users.

Cross-chain connectivity with Sui Bridge

This year, Sui took a significant step forward in terms of interoperability with the launch of Sui Bridge on Mainnet. Sui Bridge offers a native bridge, secured by Sui validators, for bridging assets between Sui and Ethereum. While asset options are limited today, the following year will bring more assets and functionality to Sui Bridge.

Additionally, Sui Bridge now incorporates Circle's Cross-Chain Transfer Protocol (CCTP), allowing users to transfer native USDC between Sui and eight other chains.

Set for success in 2025

As Sui continues to push the boundaries of DeFi, the foundation laid this past year positions the network for even greater achievements ahead. With expanding institutional adoption, growing liquidity options, and cutting-edge innovations like DeepBook, Sui is set to lead the next wave of DeFi and broader financial innovation. The momentum is undeniable, and the opportunities for users, builders, and institutions are just beginning to unfold.

Note: This content is for general educational and informational purposes only and should not be construed or relied upon as an endorsement or recommendation to buy, sell, or hold any asset, investment or financial product and does not constitute financial, legal, or tax advice.