The next phase of Sui’s evolution could position it as the go-to blockchain for global payments, gaming economies, and innovative DeFi products. Over the past year, Sui has seen a near 100x surge in stablecoin supply—from $5.4 million to $490 million—making it one of the fastest-growing Layer 1 ecosystems in Web3.
With over 1.7 million daily active users surpassing Ethereum in growth rate and competing closely with Aptos, Sui is gaining momentum through high-speed DeFi, institutional adoption, and aggressive liquidity incentives. As capital inflows accelerate, is Sui emerging as the dominant blockchain for digital stable assets? Let’s explore.
Understanding Sui’s Object-Centric Architecture
Unlike traditional account-based blockchains like Ethereum or BNB Chain, Sui operates on an object-based model, where every asset—tokens, NFTs, wallets—is treated as a unique object with distinct properties and ownership.
This architecture brings transformative advantages for scalability and user experience but introduces complexity in tracking token balances and liquidity.
Key Implications for Stablecoins
- Object Versioning: Each transaction creates a new version of affected objects, preserving a complete audit trail of state changes.
- Partial Transfers: Sending part of a balance doesn’t just deduct from a wallet—it splits the original object into two: one with the remaining balance (updated version) and a new object for the transferred amount.
- Ownership Transfer: Instead of updating account balances, Sui transfers ownership of specific objects, enabling fine-grained control and parallel processing.
This design enables ultra-fast finality and low fees but requires advanced indexing solutions to accurately map stablecoin supply and distribution across fragmented object states.
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How SZNS Powers Reliable Data Indexing on Sui
Due to Sui’s object model, traditional balance-tracking methods fail. Stablecoin holdings aren’t stored in simple account ledgers but scattered across multiple evolving object versions. Enter SZNS, a data infrastructure provider that solves this challenge.
The SZNS Indexing Framework
SZNS employs a multi-layered approach to reconstruct real-time stablecoin metrics:
1. Object-Level Balance Reconstruction
- Scans all objects linked to a wallet.
- Retains only the latest version per object ID for current balance accuracy.
- Archives historical versions for forensic or time-specific queries (e.g., “What was my balance on Jan 1?”).
2. Unified DeFi Liquidity Mapping
- Identifies protocol-specific objects: DEX pools, lending positions, staking contracts.
- Normalizes diverse data structures (e.g., pool reserves, LP shares) into a standardized schema.
- Enables cross-protocol liquidity comparisons despite differing implementations.
3. Anomaly Handling
- Accounts for locked, staked, or delegated tokens.
- Implements custom logic for non-standard protocols (e.g., rebase tokens, partial collateral models).
- Prevents misrepresentation of tradable balances.
Data Flow Pipeline
- Data Ingestion: Real-time monitoring of transactions, blocks, and state changes.
- Balance Rebuilder: Aggregates latest object states into live wallet balances.
- DeFi Mapper: Tags and standardizes liquidity across protocols.
- Anomaly Processor: Flags special cases (vesting, staking) for accurate classification.
- Final Aggregation & API Delivery: Exposes clean, query-ready data via APIs for dashboards, wallets, and analytics tools.
This robust indexing makes transparent, reliable insights possible—critical for investors, developers, and users navigating Sui’s dynamic ecosystem.
Explosive Growth: Stablecoin Supply and Ecosystem Expansion
Sui’s stablecoin market cap surged from $5.42 million in early 2024 to over $555 million by February 2025—an extraordinary trajectory reflecting strong adoption signals.
Key Growth Drivers
- Scalability: High throughput (120K+ TPS potential) and sub-second finality enable seamless user experiences.
- Institutional Confidence: Backing from firms like VanEck signals growing trust in Sui’s long-term viability.
- Diverse Use Cases: Beyond DeFi, stablecoins power gaming rewards, cross-border payments, and NFT marketplaces.
Ecosystem Snapshot (as of early 2025)
- Daily Active Addresses: Over 1.7 million—surpassing Ethereum (~440K) and closing in on Aptos (~1.1M).
- New Accounts: 7.5 million added in 7 days (+104.9%), indicating viral user acquisition.
- Total Transactions: 8.49 billion processed, with 11.8 million added daily.
- DeFi TVL: Reached $1.26 billion, led by Suilend ($387.5M).
Despite temporary slowdowns in NFT and token creation (-48% and -5.8% respectively), DeFi activity remains red-hot.
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Core Stablecoins Powering the Sui Economy
Five major stablecoins now circulate on Sui, with native tokens accounting for 80.1% of total supply. Let’s examine the leaders shaping this landscape.
USDC (Circle-Issued)
- Market Share: 47.47%
- Backing: Fully reserved in cash and short-term U.S. Treasuries.
- Why It Dominates: Institutional trust, regulatory compliance, and seamless bridging via Circle’s multi-chain issuance.
AUSD
- Model: Hybrid (over-collateralized + algorithmic stabilization)
- Use Case Focus: DeFi lending and yield farming
- Growth Driver: High APRs on Suilend (~11.19%) attract lenders and borrowers alike.
USDY (Ondo)
- Backing: Crypto-collateralized (BTC, ETH, SUI)
- Yield Appeal: Offers up to 46.92% APR on Cetus for liquidity providers.
- User Profile: Yield seekers comfortable with crypto-backed risk.
FDUSD
- Recent Surge: +24.35% weekly growth
- Adoption Niche: Gaining traction in Asian-focused gaming and payment dApps.
BUCK (Bucket Protocol)
- Current Status: Smaller market cap (~$39M), mixed collateral model
- Potential: Could scale with deeper integrations into major DeFi platforms.
Stablecoin Utility in Sui DeFi
Stablecoins are the backbone of Sui’s decentralized finance ecosystem, fueling lending markets, DEX pools, and yield strategies.
TVL Distribution Across Protocols
| Stablecoin | Primary Protocol | % of TVL | Key Use |
|---|---|---|---|
| AUSD | Suilend | 75.8% | Lending/borrowing |
| USDY | Cetus | 86.6% | High-yield liquidity provision |
| USDC | Cetus/Suilend/Navi | Balanced | General-purpose liquidity |
Cetus leads as Sui’s top DEX, offering advanced AMM features and aggressive mining rewards. Suilend dominates lending with competitive rates and incentives.
Tackling Liquidity Fragmentation
As different stablecoins thrive in isolated “pockets” of yield, fragmentation becomes a challenge. Emerging solutions include:
- Yield Aggregators (e.g., SuiVault, SuiYieldFarm): Auto-compound returns across protocols.
- Cross-Collateral Lending: Some platforms now accept multiple stablecoins as collateral, improving capital efficiency.
- Interoperable Pools: New AMM designs aim to unify liquidity across similar assets.
Holder Distribution: Centralization vs. Accessibility
Despite rapid growth, stablecoin ownership remains concentrated among a few large holders:
- AUSD: Top holder controls 47.4%—primarily deployed in Suilend for yield.
- USDC: Top five wallets hold ~41%, actively providing liquidity across DEXs.
- USDY: Two wallets control 94%, focused on maximizing gains via Cetus farms.
While centralization raises decentralization concerns, these whales also provide critical liquidity that sustains protocol health during early growth phases.
Beyond DeFi: Real-World Applications
Sui is pushing stablecoins beyond speculative finance into tangible use cases.
Gaming: The SuiPlay0x1 Vision
SuiPlay aims to integrate blockchain rewards directly into mainstream PC and console games.
- Players earn NFTs or tokenized credits redeemable in-game or as stablecoins.
- Example: A player sells an NFT skin for AUSD or USDC within seconds—bridging virtual achievement with real-world value.
- With Steam boasting 132 million monthly users, even minor adoption could bring millions of new stablecoin users to Sui.
Financial Inclusion via SMS Transactions
Sui co-founder Kostas Krypto demonstrated a text-based transaction system for unbanked populations:
- Users send commands via SMS to trigger off-chain or lightweight on-chain transfers.
- Ideal for regions like Sub-Saharan Africa or Southeast Asia where mobile penetration exceeds banking access.
- Local issuers can partner with telecoms to offer USD-pegged stablecoins as everyday payment tools.
This opens pathways for remittances, microloans, and peer-to-peer commerce—powered entirely by blockchain.
Competitive Landscape: Sui vs Other L1s
| Blockchain | Stablecoin Strengths | Challenges |
|---|---|---|
| Ethereum | Largest ecosystem, deep liquidity | High fees limit microtransactions |
| Solana | Fast, scalable | Past network outages affect reliability |
| Avalanche | Strong subnet bridging | Slower DeFi momentum |
| Sui | Low cost, fast finality, growing stablecoin base | Still maturing developer ecosystem |
Sui stands out by combining performance with user-centric design—ideal for mass-market applications in gaming and payments.
Frequently Asked Questions (FAQ)
Q: What makes Sui’s stablecoin growth unique compared to other blockchains?
A: Sui combines ultra-fast transactions with an object-based architecture that enables scalable, parallel processing—perfect for high-frequency stablecoin use in gaming and payments.
Q: Are Sui’s native stablecoins safe to use?
A: AUSD and USDY are over-collateralized and actively managed by their protocols. While not insured like fiat-backed tokens, they’ve maintained strong pegs due to effective incentive mechanisms.
Q: Can I earn yield on stablecoins in Sui DeFi?
A: Yes—platforms like Cetus and Suilend offer attractive APYs (up to 46%+) for depositing USDC, AUSD, or USDY in liquidity pools or lending markets.
Q: How does Sui handle regulatory compliance for stablecoins?
A: Circle’s USDC issuance on Sui follows full regulatory standards. Other native tokens operate under decentralized governance but prioritize transparency and auditability.
Q: Is Sui suitable for non-crypto-native users?
A: Absolutely—Sui’s focus on low friction (e.g., SMS transactions) and intuitive interfaces lowers the barrier to entry for mainstream adoption.
Q: Where can I track Sui’s stablecoin metrics reliably?
A: SZNS provides real-time data dashboards and APIs that accurately reflect supply, distribution, and liquidity trends across the ecosystem.
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Conclusion
Sui has evolved from a promising Layer 1 into a rapidly expanding ecosystem where stablecoins play a central role in driving liquidity and utility.
From a $5.4 million starting point to over $550 million in stablecoin value—fueled by DeFi innovation, institutional interest, and real-world applications—Sui is building momentum toward mainstream relevance.
Its object-centric design may complicate indexing, but tools like SZNS ensure transparency. Meanwhile, use cases in gaming and financial inclusion open doors to millions of new users.
As aggregation layers mature and cross-chain interoperability improves, Sui is well-positioned to become a leading platform for global payments, digital economies, and next-generation DeFi—all powered by trusted, liquid stable assets.