Sui Network's Stablecoin Supply Increases! Is SUI Preparing for a Bullish Surge?

The Sui Network is experiencing a significant upswing in its DeFi (Decentralized Finance) ecosystem, marked by an all-time high in stablecoin supply and a Total Value Locked (TVL) that's rapidly approaching its January peak. This surge in stablecoins, amidst a robust year for both stablecoins and Real-World Assets (RWAs), positions the Layer 1 blockchain as a noteworthy contender in the crypto space.

Since the beginning of 2025, Sui's stablecoin supply has impressively increased by 148%, reaching a substantial $918 million. This growth coincides with the strong performance of Sui's native token, SUI, which has demonstrated resilience throughout the market cycle, achieving an all-time high market capitalization of $16 billion in January.

Stablecoin Surge on Sui

The Sui Network, a Layer 1 blockchain developed by Mysten Labs, has made headlines by surpassing $950 million in stablecoin supply as of early May 2025. According to The Defiant, this is the highest level the network has ever reached, marking an over 10-fold increase in stablecoin volume since the start of the year.

Also Read: Sui (SUI) Price Prediction for 2025, 2030, 2040-2050

But why does this matter?

In simple terms, stablecoins like USDC and USDT are a reliable indicator of liquidity entering a blockchain. They serve as the core capital used in DeFi apps for lending, trading, and liquidity provision. A sharp increase in stablecoin deposits often reflects heightened user activity or investor interest—both of which can act as catalysts for a native token’s price surge.

Moreover, this uptick on Sui isn’t isolated. It aligns with a broader trend across the crypto market, where capital rotation is shifting from Ethereum-based DeFi into newer, lower-fee alternatives. The Sui blockchain, with its parallel execution and high throughput, is emerging as one of those alternatives.

Also Read: SUI Price Prediction: Outperforming Market, Including Bitcoin

DeFi Ecosystem on Sui Is Booming

Sui expanding stablecoin reserves are only part of the story. The growth is being driven by real adoption, particularly in the decentralised finance (DeFi) sector. Projects like Cetus, Aftermath Finance, Navi Protocol, and Scallop are drawing increasing user activity, offering competitive yields and efficient transaction execution.

For instance, Cetus is now among the top DEXs on the network by volume, while Navi Protocol has established itself as a leading lending platform. These platforms not only facilitate the use of stablecoins but also incentivise users with attractive APRs, farming opportunities, and SUI-based rewards.

Sui’s modular design and Move-based smart contracts provide developers with flexibility and safety, giving them a unique edge over older platforms. As a result, the number of new dApps deploying on Sui is growing steadily, encouraging even more stablecoin deposits and overall activity.

Data from DEXTools and DeFiLlama further confirms the trend: Sui’s total value locked (TVL) has crossed the $700 million mark, up from under $100 million just six months ago.

Also Read: Sui (SUI) Crypto Price Prediction and Technical Outlook

SUI Price Rally and TVL Rebound

The surge in stablecoins is occurring in tandem with a notable rally in the price of SUI. The blockchain's native token has been outperforming a significant portion of the altcoin market, capitalizing on Bitcoin's recent climb back to the $97,000 mark. This positive price action is further supported by a strong rebound in Sui's Total Value Locked (TVL). Currently at $1.72 billion, Sui's TVL is now within 20% of its all-time high of $2.08 billion recorded earlier this year.

DeFi Protocols Leading the Charge

Several DeFi protocols within the Sui Network are experiencing remarkable growth, particularly lending platforms Suilend and NAVI. Over the past 30 days, both protocols have seen their TVL increase by more than 60%. This indicates increasing user engagement and capital deployment within Sui's lending and borrowing markets, further solidifying the network's DeFi infrastructure.

Growing User Adoption Evident in Daily Active Addresses

Beyond financial metrics, Sui Network is also witnessing significant growth in user adoption. The number of daily active addresses (DAU) has seen a substantial increase since the start of the year, reaching approximately 1.4 million. This is a significant jump from the 630,000 DAU recorded on January 1st. While the metric dipped to around 400,000 in early February, the current figures demonstrate a strong resurgence in user activity on the Sui blockchain, according to data from Artemis Terminal.

Also Read: Sui Token's Struggles and Potential

Is Sui Poised for a Bullish Surge?

The confluence of factors: a soaring stablecoin supply, a rebounding TVL, strong performance of DeFi protocols, and increasing user adoption paints a promising picture for the Sui Network. The significant increase in stablecoins suggests greater liquidity and capital within the ecosystem, which can fuel further growth and potentially contribute to a bullish surge for the SUI token. However, it's crucial to remember that the cryptocurrency market is inherently volatile, and while these indicators are positive, they do not guarantee future price movements. Investors should conduct their own thorough research and exercise caution.

What Could This Mean for the SUI Token?

While no one can predict the market with certainty, several bullish indicators are stacking up. The increased stablecoin supply is a strong sign of inflowing capital, which often precedes speculative activity and market momentum. Additionally, with DeFi platforms offering SUI-based yield farming and staking incentives, demand for the token is on the rise.

The recent launch of native stablecoins and cross-chain integrations has also strengthened Sui’s fundamentals. If these developments continue, they could create sustained demand for SUI across various use cases from gas fees to governance.

Analysts have noted that SUI remains undervalued compared to tokens of similar L1 blockchains like Solana and Avalanche. If investor sentiment continues to shift and the broader market remains bullish, SUI could potentially double or even triple from current levels in the months ahead.

That said, price action is always subject to external factors, including macroeconomic shifts and regulatory news. Still, the on-chain data paints a promising picture.

Also Read: SUI Price Analysis: Bullish Trends and Future Predictions

Conclusion

The Sui Network is clearly gaining traction, with nearly $1 billion in stablecoins now circulating on-chain. This surge reflects growing confidence in the blockchain’s DeFi ecosystem and a potential bullish shift in SUI’s market outlook. As developers flock to build on Sui and users chase attractive yields, the foundation is being laid for what could be the network’s breakout moment.

If you’ve been on the sidelines, now might be the time to keep a closer eye on Sui. The signs are lining up, and the market seems to be paying attention.

FAQ

Why is the increase in stablecoin supply on Sui important?

It indicates rising liquidity and user interest, which often leads to more trading, lending, and price momentum for the SUI token.

What are the main DeFi projects on Sui right now?

Some of the top DeFi protocols include Cetus, Aftermath Finance, Navi Protocol, and Scallop, all contributing to the network’s growth.

Could SUI outperform other Layer 1 tokens in 2025?

If current trends continue and adoption accelerates, SUI has the potential to compete with or even surpass other L1 tokens in terms of growth and value.