Tony Kim
October 12, 2024 3:56 p.m.
Sui’s DeFi sector saw substantial growth in the third quarter of 2024, driven by new technologies and partnerships. Key indicators and developments indicate a promising future for the blockchain ecosystem.
The third quarter of 2024 marked a period of significant growth for Sui’s decentralized finance (DeFi) ecosystem, driven by a series of fundamental developments and strategic partnerships. According to The Sui Blog, the introduction of the Mysticeti consensus engine, the Sui Bridge and the upcoming version 3 of DeepBook, among other innovations, have supported this progress.
Technological advances improve performance
The deployment of Mysticeti, Sui’s new consensus engine, has played a crucial role in improving network efficiency by significantly reducing latency and speeding up transaction completion. At the same time, the Sui Bridge underwent testing for transactions between Sui Testnet and Ethereum Sepolia Testnet, marking a crucial step towards cross-chain interoperability.
DeepBook, Sui’s native liquidity layer, is gearing up for its version 3 rollout, which promises to further enhance the capabilities of the DeFi ecosystem. These technological advancements contributed to a notable increase in protocol settings during the second half of the third quarter.
Key Indicators Highlight Growth
Sui’s total value locked (TVL) remained stable during the first months of the third quarter, but surged towards the end, peaking at $944 million compared to an average of $611 million. This upward trend suggests that TVL could surpass $1 billion in the following quarter. On-chain volume also saw significant spikes, reaching a high of $131 million at the end of the third quarter.
Strategic partnerships and ecosystem expansion
In September, Circle announced the integration of native USDC into Sui, introducing a widely used stablecoin to the platform. This addition is expected to improve liquidity and attract more users to the ecosystem. The mainnet launch of USDC, Sui Bridge and DeepBook version 3 should lead to a promising final quarter of 2024.
Notable Developments in Sui’s DeFi Ecosystem
Among important developments, the Sui Bridge Mainnet launch on the last day of the third quarter supports asset transfers between Sui and Ethereum, with plans to include more tokens and chains. DeepBook has reached a cumulative volume of over $500 billion, with the DEEP token intended to introduce community governance.
Cetus has launched its Dollar-Cost Averaging (DCA) product in beta, allowing users to automate investments and potentially mitigate the impacts of market volatility. Meanwhile, AlphaFi introduced a capital-efficient Sui vault, leveraging the composability of the Sui network to maximize returns.
Other notable advancements include the launch of NAVI’s Leveraged Strategies, improving users’ accessibility to leverage with reduced transaction costs, and Turbos’ automated vault for liquidity providers. Haedal’s TVL doubled, making it the largest liquid staking protocol on Sui by TVL, while Scallop surpassed $100 billion in total lending and borrowing volume.
Conclusion
Developments in Sui’s DeFi landscape during Q3 2024 reflect a broader trend of innovation and growth. Through strategic partnerships, technological advancements, and a robust ecosystem, Sui is well-positioned to continue its upward trajectory in the DeFi space.
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