Sui Launches Mainnet Amidst Speed and Decentralization Issues, Despite $2 Billion Valuation
Sui, the highly anticipated blockchain platform that boasts a $2 billion valuation and is positioned to rival Aptos and other heavyweights in the decentralized finance (DeFi) space, launched its mainnet on Wednesday. The launch put the platform’s $300 million in venture capital funding to the test, and the results were mixed.
Sui’s token trades at $1.25 at press time, a significant rise from the pre-sale price of $0.03 and the public sale price of $0.10. Its market capitalization currently stands at $687 million, according to CoinGecko. However, the launch exposed some issues with the platform’s speed and decentralization.
The platform’s developers had promised fast transaction speeds, but data from Sui’s blockchain explorer shows that speeds averaged around four transactions per second (4tps) on Wednesday, compared to Aptos’ 9tps. This could be a major concern for Sui as speed is a critical factor in the DeFi space.
On the decentralization front, Sui faced several stumbling blocks as well. While the network has more than 2,100 nodes operating across 43 countries, these nodes are primarily concentrated in Germany and the U.S., with a small number running across Asia and eastern Europe. It’s worth noting that the network is still in its infancy, and over time the distribution of validators will likely become more distributed.
The distribution of token holders also remains unclear at press time, which raises questions about how decentralized the platform truly is.
Sui’s success in securing VC funding pre-launch has invited comparisons to Aptos, another young blockchain with a large VC backing. Both blockchains were designed by teams from Diem, formerly known as Libra, that was shelved by Meta in 2022. Move, a Rust-based programming language that was developed at Meta, undergirds both networks.
Sui currently has more than 200 projects in its directory and another 100 projects vying to build on its network. Mysten Labs, the blockchain’s core contributor, raised $300 million last year to support the construction of the network’s central infrastructure and fast-track the Sui ecosystem’s adoption.
The launch of Sui’s mainnet has highlighted some areas for improvement for the platform, particularly in terms of speed and decentralization. However, with a strong valuation and significant funding, it remains to be seen how Sui will respond to these challenges and position itself in the competitive DeFi space.
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