As of the latest update, SUI has witnessed a 5% decline, settling at $3.49. This sudden drop has had a noticeable impact on the derivatives market, with Coinglass data indicating that $2.17M worth of long positions were liquidated as a result of forced selling by long buyers.
The decline was triggered by reports of the SUI network encountering a block production stoppage. SuiScan data revealed that the network remained inactive for over two hours without generating new blocks.
Addressing the community through an official announcement, the SUI Network assured stakeholders that they had identified the bug causing the outage and had successfully rectified it to restore normal network operations.
According to the network’s status page at the time of reporting, block production had resumed, and the blockchain was functioning as expected.
The network outage prompted reactions from the crypto community on various platforms, with some drawing comparisons between SUI and Solana.
One user expressed concerns, stating,
“SUI blockchain facing downtime issues despite claiming to rival Solana.”
Is SUI Poised to Challenge Solana’s Dominance?
SUI has frequently been hailed as a potential “Solana killer.” Recent reports indicated that the blockchain’s decentralized exchange (DEX) volumes had surpassed those of Solana earlier this month.
Interestingly, the network outage coincided with a notable surge in daily active accounts. SuiVision data revealed a rapid increase in daily active accounts from 668,000 to 826,000 within a span of five days.
Furthermore, total active accounts on the network have now exceeded 28 million.
Despite these advancements, Solana has demonstrated robust growth since the start of the month. While SUI encountered a network outage, Solana continued to outpace its rival, especially in the realm of decentralized finance (DeFi).
As per DeFiLlama, Solana’s Total Value Locked (TVL) surged by 44% from $5.79 billion to $8.39 billion recently. Moreover, decentralized application (dApp) activity on Solana soared by 81% to reach $7 billion within 30 days.
Total transactions on Solana witnessed a 13% increase, while unique active wallets rose by 34% in the same period, showcasing a significant rise in network utilization.
Solana’s consistent performance without any major outages has contributed to building trader confidence. This stands in contrast to SUI’s recent struggle, which led to a dip in the token’s price until network functionality was restored.