Is SUI a Good Investment? (2025)

Why is SUI a good investment?

SUI was created by Mysten Labs, a team of former Meta engineers. Today, SUI powers a smart contract blockchain designed to be faster than competitors like Ethereum. 

High-performance technology

SUI can process transactions in parallel rather than sequentially, enabling incredibly fast speeds of up to 297,000 transactions per second. This parallel processing capability allows the network to handle significantly more activity than traditional blockchains without experiencing the same congestion issues. 

Elite development team 

The Mysten Labs team includes over 100 members who collectively hold more than 75 PhD degrees, with expertise across product, computer science, and cryptography. The founding team consists of five former Meta employees who were key contributors to Facebook's Diem blockchain project and created the Move programming language. 

Strong institutional backing 

Mysten Labs raised $300 million in funding in 2022, with support from major investors including Andreessen Horowitz, Binance Labs, and Coinbase Ventures. This unprecedented funding round during a bear market showed how confident investors were in SUI’s team and technical foundation. 

Rapidly growing DeFi ecosystem

SUI's Total Value Locked reached $2 billion in early 2025, doubling in just three months. The network has attracted significant DeFi activity with average daily decentralized exchange volume reaching $456 million in Q3 2025. 

Low transaction fees

SUI employs a unique gas mechanism where validators set reference fees for each 24-hour period, ensuring that transaction costs remain stable and predictable. This is different from other blockchains, where fees can spike dramatically during periods of high network activity.

Trading volume 

As of November 2025, SUI had a market capitalization of approximately $5.8 billion. The network processed over 7.5 billion transactions in 2024, surpassing established blockchains like Ethereum and Polygon.

What is SUI?

SUI is a Layer-1 blockchain platform designed for decentralized applications and smart contracts. The network launched in May 2023 and has rapidly grown into one of the largest cryptocurrency ecosystems by market capitalization.

How SUI verifies transactions

SUI uses a variation of Proof-of-Stake, where users lock up their SUI tokens and choose validators to process transactions on their behalf. On top of that, SUI uses two additional systems, Narwhal and Bullshark, that allow the network to organize and confirm transactions. 

Because of this design, SUI can verify simple actions like sending tokens or trading NFTs almost instantly, while still keeping stronger security checks in place for more complex transactions.

What is the SUI Token?

The SUI token has a fixed maximum supply of 10 billion tokens, with approximately 3.68 billion currently in circulation. SUI allows users to pay gas fees, earn staking rewards, and vote on governance decisions. A portion of transaction fees is deposited into a storage fund that subsidizes long-term data storage costs, which keeps costs low for users. 

What are the risks of investing in SUI?

Extreme price volatility 

Like all cryptocurrencies, SUI is highly volatile. SUI reached an all-time high of $5.35 on January 6, 2025, but then saw an approximately 72% decline. 

New and unproven 

SUI launched in May 2023, which means it has significantly less history than established blockchains. The network has not yet weathered multiple market cycles and has not seen the stress testing that other blockchains have. 

Intense competition 

SUI faces competition from well-established smart contract platforms including Ethereum, Solana, Avalanche, and Aptos. These competitors have larger developer communities, more mature ecosystems, and stronger network effects. Solana in particular offers fast speeds and low costs while having a larger user base. 

Token unlock schedule 

With a maximum supply of 10 billion tokens, approximately 5.2 billion SUI remains locked or designated for future release. Periodic token unlocks introduce additional supply to the market, which can drive prices down. 

Centralization

The project emerged from a small team of former Meta engineers, and Mysten Labs maintains significant influence over the network's development direction. The concentration of technical expertise and decision-making within a single organization has caused some critics to label SUI as "centralized."

Limited mainstream visibility 

While SUI has gained traction within crypto-native communities, mainstream adoption remains limited. The network lacks the household name recognition of Ethereum or the retail appeal of Solana's memecoin ecosystem. 

How does SUI compare to competitors?

Let's compare SUI to one of its biggest competitors: Solana. 

SUI vs. Solana

Solana is a high-performance blockchain that processes approximately 50,000 transactions per second using a combination of Proof-of-History and Proof-of-Stake consensus mechanisms. Solana has a market capitalization of $113.5 billion as of Q3 2025, making it significantly larger than SUI.

Solana offers proven performance at scale with average transaction fees ranging from $0.002 to $0.012. The network has become the dominant platform for memecoins and high-frequency trading applications. Solana also benefits from stronger institutional adoption, with the network handling nearly 50% of all USDC transfers across blockchains in July 2025.

However, Solana has experienced multiple network outages, while SUI has maintained solid reliability. SUI can process around 120,000 transactions per second in real-world conditions, nearly 2.5 times Solana's capacity. SUI's predictable fee model offers advantages for applications requiring consistent performance. 

SUI's advantages: Superior speeds, predictable fee structure, newer technology designed to avoid known blockchain bottlenecks, and no history of network outages.

Where SUI struggles: Much smaller market cap and ecosystem, limited memecoin activity, less institutional adoption, shorter operational track record, and smaller developer community.

SUI historical performance

Early Days (2023)

SUI launched with an all-time low of $0.3643 on October 19, 2023. The network faced the challenge of building credibility and attracting developers during a difficult environment for crypto. 

The 2024-2025 Bull Run

SUI climbed approximately 290% over the course of 2024-2025. 

The rally was fueled by multiple factors: rapid ecosystem growth with DeFi protocols launching on the network and growing recognition of SUI's technical advantages. The network's TVL surged from $1 billion to $2 billion in just three months in early 2025, showing that real investors were using SUI. 

SUI reached its all-time high of $5.35 on January 6, 2025, driven by institutional announcements including Grayscale's launching a SUI trust and strong momentum in the broader cryptocurrency market.

What's a good price prediction for SUI?

Making accurate cryptocurrency price predictions is difficult. The crypto market involves complex supply and demand dynamics  that are hard to forecast with certainty, including regulatory developments, macroeconomic conditions, and shifting investor sentiment.

Rather than betting on specific price targets, consider the fundamentals. Is SUI still growing its transaction volume and developer activity? Are major protocols choosing to build on SUI over competitors? Is the team continuing to ship technical improvements and maintain network reliability? Remember, these are the factors that will drive long-term growth. 

How do I buy SUI?

SUI is available on major cryptocurrency exchanges including Coinbase, Kraken, Gemini, and Binance.

Step 1: Create an account

Choose a reputable exchange that supports SUI and create an account using your email address or phone number. Make sure to create a strong password that you do not use for other accounts. 

Step 2: Verify your identity

Complete the exchange's Know Your Customer (KYC) verification process by providing personal information and uploading a government-issued photo ID. This verification typically takes 24-48 hours. 

Step 3: Link a payment method

Connect a bank account or another payment method to fund your account and begin making purchases. 

Step 4: Buy SUI

Navigate to the SUI trading page, enter the amount you want to purchase, and execute the order. 

Conclusion

SUI has established itself as a high-performance blockchain with strong technical foundations. The network has achieved rapid growth with over $2 billion in DeFi Total Value Locked just over two years after launch.

SUI remains highly volatile and faces intense competition. Before you invest, be sure to consider potential risks including volatility and SUI’s relatively short history.