Sui has emerged as a significant player in the decentralized finance (DeFi) space, experiencing remarkable growth in a relatively short period. This 18x increase in investment is the result of an impressive perfect storm of strategic initiatives, technological advancements and a boom time ecosystem. This short article will highlight the most important factors fueling Sui’s recent Total Value Locked (TVL) and ecosystem growth. We’ll take a close look at how stablecoin volume, decentralized exchange (DEX) activity, and Bitcoin-pegged assets have affected overall performance. Readers will develop a deep understanding. They’ll learn how all these Sui-rrific factors are fueling Sui’s booming DeFi scene and providing it a crucial leg up in the increasingly cutthroat blockchain race.
Factors Contributing to Recent Sui Growth
Sui’s transformation from a promising newcomer to a DeFi powerhouse has been swift, with several key milestones along the way. Its TVL skyrocketed from around $25 million at launch (~$13 million in Ethereum) in May 2023. Fast forward to May 2025, where it grew to a remarkable $1.7 billion. This continued growth is by design. It’s the latest, and perhaps best example, of a well-orchestrated strategy designed to attract the most users, developers, and institutions to the platform. One of the most important factors fueling this rapid expansion is the increase in stablecoin volume on Sui. It jumped from $400 million at the beginning of January to approximately $1.2 billion by mid-May 2025. As shown through the continuously growing monthly transfers averaging more than $70 billion, there’s incredible bullish activity and confidence in the Sui network.
The cumulative decentralized exchange (DEX) volume on Sui has skyrocketed to an impressive $70 billion. This impressive milestone is a testament to the dynamic activity and growth of the network. First, the high DEX volume is indicative of a highly engaged user base with respect to trading. This ceaseless action fills the Sui ecosystem with more genius participants. Sui goes further by integrating and supporting Bitcoin-pegged assets — an expansion that increased its overall appeal and quickly attracted users looking to leverage their Bitcoin holdings in DeFi. These elements, paired with calculated alliances and a burgeoning ecosystem, have played a pivotal role in Sui’s meteoric rise through the DeFi ranks.
Strategic Collaborations
One of the biggest drivers of Sui’s growth is its high-profile partnerships with projects and organizations. These collaborations add to the network’s capacity, increase its geographic footprint, and bring new users into the fold. Sui works together with World Liberty Fi, a DeFi protocol based on Donald J. Trump. This collaboration emphasizes Sui’s willingness to explore cutting-edge and controversial projects, capturing the market buzz and user interest.
Outside of these niche projects, Sui is actively remaining partnering with established TradFi institutions. Ondo Finance's launch of tokenized U.S. Treasuries on Sui brings traditional financial assets into the DeFi realm, appealing to institutional investors seeking exposure to crypto markets. Similarly, ATHEX Exchange's exploration of on-chain fundraising via Sui demonstrates the platform's potential to revolutionize capital markets. Recent announcement of its partnership with Microsoft further solidifies Sui’s position as a top blockchain platform. This collaboration serves as a model for broader integration into other industries. These strategic partnerships further underscore Sui’s commitment to lead the way with innovation. They reflect its ambition to become the leading blockchain for both DeFi and traditional finance applications.
Institutional Engagement and ETF Applications
The growing institutional traction is perhaps the best sign of Sui’s long-term potential. Canary Capital’s quest for SEC approval of a $SUI ETF would represent a major breakthrough. For institutional investors, an ETF provides a regulated, accessible route to gain exposure to the SUI token. This has the potential to generate massive capital inflows into the Sui ecosystem. This development indicates an increasing confidence in Sui’s technology, security, and market viability among the institutional players.
Even traditional finance go-to-market entities with long pedigree such as Ondo Finance and ATHEX Exchange are entering. This further demonstrates Sui’s deep allure to the institutions hungry to experiment with blockchain technology’s potential benefits. These collaborations bring new capital and international know-how to the Sui ecosystem. Yet, they validate the ecosystem’s potential to bridge the fiat world with DeFi. As more institutions recognize Sui's capabilities and explore opportunities for collaboration, the platform is poised for continued growth and adoption.
Developer Expansion and Support Programs
The Sui Foundation is working hard to support the Sui builder community with various grants and funding programs. Together, these initiatives are aimed at encouraging open-source development, rewarding projects that deepen the Sui ecosystem, attract talent, and provide the best developer experience to foster innovation. The Sui Foundation fuels innovative projects through the provision of grants. Whether you’re looking at DeFi, gaming, analytics — you name it — these projects help create this diverse, colorful, exciting ecosystem.
The Sui Foundation regularly seeks proposals through Requests for Proposals (RFPs), focusing on needs identified within the Sui ecosystem. This needs-based approach focuses funding on projects that address the most important gaps. Second, it drives the long-term expansion and progress of the Sui ecosystem. In addition to funding individuals working on projects, the Sui Foundation provides financial and technical support to developers building within the ecosystem. This support fosters an energetic community of developers that are constantly challenging the frontiers of innovation atop Sui’s technology. The Sui Foundation has a long-standing and deep commitment to nurturing the builder community. This commitment is an incredibly positive omen of strong, sustainable future growth within the Sui ecosystem.
Community Development Efforts
Beyond technology and partnerships, Sui’s success will depend on the strength and engagement of its community. Stringent rules were replaced with Sui Foundation’s robust support for community development via initiatives like educational programs, online forums, and community events. These efforts aim to educate users about Sui's technology, promote collaboration among community members, and gather feedback to improve the platform.
Like those offered by Axelar and Wormhole, cross-chain bridges are key to Sui’s community development. Bridges like these allow assets and data to move seamlessly across all supported blockchains. As a result, users can more seamlessly engage with the Sui ecosystem from other networks. This interoperability enhances Sui’s ecosystem and lures users from various blockchain communities, creating a more inclusive and collaborative environment. Sui is passionate about scaling GameFi and creator economies. This effort is critical for attracting more diverse audiences and helping to deepen local community buy-in. Sui empowers developers with the tools and infrastructure to build next-generation gaming and creator experiences. This creates a multitude of fun, inspiring, and creative ways for users to interact with the platform and ultimately play a larger role in its evolution.
Beyond these initiatives, Sui is working on Layer 2 improvements using Zero-Knowledge (ZK) technology. These improvements will increase overall scalability and reduce transaction fees across the Sui network. Beyond that, they’re improving privacy, making the platform more attractive to users and developers. This ve tokenomics model adopted by Momentum is yet another demonstration of Sui’s dedication to building in the community’s best interest. This model better aligns incentives between LPs, traders, and protocols, creating a more sustainable and equitable ecosystem. By putting community first, Sui is ensuring that they have a solid foundation to build upon for enduring growth and success.
Sui’s DeFi explosion is a complex picture fueled by savvy partnerships, institutional interest, developer backing, and community building. Stablecoin volume is increasing, DEX activity has never been so energetic. Moreover, the interoperability of Bitcoin-pegged assets has contributed to Sui’s meteoric development. On the move, Sui is still making major strides and expanding its ecosystem even further. This positions it extremely well to be the go-to platform for DeFi. Endorsements from prominent industry leaders like Charles Hoskinson have praised Sui. This endorsement is confirmation of Sui’s potential and positions it as a viable alternative to more established platforms. Visit ThrowingToken.com to stay on top of Sui’s incredible journey through the blockchain world, and read expert opinions on the protocol’s latest happenings.
