At the current moment, Sui [SUI] has dropped by 5% to reach a trading price of $3.49. This decrease has had a cascading effect on the futures market, with Coinglass data indicating that $2.17M worth of long positions were liquidated as long buyers were compelled to sell their assets.
The dip occurred following reports of block production halting on the SUI network. According to SuiScan, the network had not produced any blocks for over two hours.
In response to community concerns, the SUI Network announced that a bug had been identified and a remedy had been implemented to restore the blockchain’s functionality.
In a statement on X, the SUI Network mentioned,
“The SUI network is currently experiencing an outage and is unable to process transactions. We have pinpointed the issue, and a solution will be applied imminently.”
As of now, the network’s status page has confirmed the resumption of block production and the full operability of the blockchain.
The network interruption elicited reactions from the crypto community on X, with some drawing parallels between SUI and Solana.
One user remarked,
“SUI blockchain is offline. Yet they positioned themselves as a competitor to Solana.”
Can SUI Compete with Solana?
SUI has frequently been hailed as a potential “Solana killer.” Recently, CryptoCrypto reported that the blockchain’s decentralized exchange (DEX) trading volumes were surpassing those of Solana.
The recent network outage coincided with a surge in daily active accounts. SuiVision data reveals that the number of daily active accounts rose from 668,000 to 826,000 within a span of five days.
The total active accounts on the network have exceeded 28 million.
Nevertheless, throughout the month, Solana, which has previously grappled with network downtimes, has seen more growth compared to SUI.
In the realm of decentralized finance (DeFi), Solana’s Total Value Locked (TVL) has surged by 44% month-to-date, reaching $8.39 billion according to DeFiLlama data.
Furthermore, decentralized application (dApp) activity on the network soared by 81% in the past 30 days, amounting to $7 billion.
Total transactions increased by 13%, while unique active wallets witnessed a 34% rise in 30 days, showcasing a growing network usage.
Despite the escalating usage, Solana has maintained smooth operations for months without any downtime. Continuation of this trend could erode one of SUI’s advantages over Solana’s network.
Moreover, network disruptions generally impact traders’ perceptions of a token, as evidenced by the recent decline in SUI’s price before the network was restored.