In order to support DeFi at the heart of its blockchain, the Sui Foundation has announced a fund of over $50 million. To do this, it will buy back 117 million SUI tokens from market makers
Sui Foundation announces a fund to support its DeFi ecosystem
Like many cryptocurrency pillars, decentralized finance (DeFi) is looking rather gray in terms of activity as the bear market drags on. In an attempt to revitalize DeFi, the teams behind the Sui blockchain have announced a $50 million-plus fund to support its ecosystem.
To this end, the Sui Foundation intends to buy back 117 million SUI tokens, from market makers:
Breaking news! We’re reallocating 117M SUI from external market makers and redirecting them to initiatives designed to fuel ecosystem and community growth!
Dive into the press release for all the details. BuildOnSuihttps://t.co/G0kZOAvbaj
– Sui (@SuiNetwork) October 5, 2023
In addition, the foundation is pleased with the progress made, after the first 5 months of blockchain activity:
“Based on the strong adoption it has already demonstrated, Sui’s DeFi ecosystem will be one of the main beneficiaries of the new allocations. As reported by leading DeFi aggregator DefiLlama, the network recently achieved its highest TVL ever, at around $37 million, up over 100% in the last two months. “
A “strong adoption” to be put into perspective
While it’s clear that market conditions are not working in Sui’s favor, the “strong adoption” we’re talking about has to be put into perspective. For example, despite some fine statistics over the summer, the number of daily Sui users remains relatively low, with just over 9,000 active addresses on Thursday:
Figure 1 – Number of daily users of the Sui blockchain
However, the number of daily transactions is quite respectable given the youth of the ecosystem. In recent days, this metric has hovered above 200,000, and even peaked at nearly 2.9 million on July 26:
Figure 2 – Daily transactions on the Sui blockchain
Since the launch of its mainnet, Sui has logged over 1.37 billion transactions and nearly 6.7 million addresses. In recent days, around 150 new addresses have been created daily.
We’ll have to wait for a more favorable market to get a clearer idea of the potential of the Sui ecosystem. For the time being, blockchain, like many others, is still in the process of establishing its foundations for the future. As Greg Siourounis, CEO of the Sui Foundation, points out, there’s still a long way to go:
“The milestones achieved by Sui and its community in its first five months have been remarkable, but they represent only a fraction of what this network was built to achieve.”
