Author: Irwyn Liong Source: artemisanalytics Translation: Shan Oppa, Golden Finance

Sui Overview

Sui quickly emerged and became the leading blockchain platform. Founded in 2022, it was created by a former Meta engineer. Designed to put people on the platform through secure, accessible and decentralized digital ownership. With low fees, high scalability and strong security, Sui cultivates a strong community of developers that drives adoption through hackathons, accelerator projects and growing transaction volumes. Its breakthrough scalability is thanks to Mysticeti, a next-generation consensus mechanism built on Narwhal and Tusk that optimizes transaction sorting, data availability and network resilience. As market sentiment remains bullish, industry leaders like VanEck expect Sui to grow and adopt further, cementing Sui's position as a key L1 blockchain competitor.

Sui's Object Model

Before getting a deeper understanding of the Sui stablecoin ecosystem, let's see how Sui is better than traditional account-based blockchains (such as Ethereum). ) Organize and record data more effectively.

In an account-based model, two wallet addresses are recorded for each transaction. debit and credit between.

This means that each transfer will update the balance on the fixed wallet address, making it simple and straightforward to track the token balance and transaction flow.

The indexing of these blockchains is relatively simple, because all balance changes are ledger-based and associated with static accounts.

Sui takes a completely different approach, representing everything like wallet address and tokens as objects. This presents unique challenges in data indexing and aggregation.

Each transaction updates all objects involved, rather than modifying the static balance at the address .

Unlike traditional ledger entries that show debits and credits, Sui modifys the state of the object, meaning that the balance is stored and tracked as an evolving object version.

Unlike traditional account-based models, objects in Sui can not only change value, but also transfer ownership between accounts. This means that modifications to objects may include value updates and ownership transfers , thus creating a new version of the object that reflects these changes.

For example, stablecoin transfers not only update the "balance" field on the wallet address—it creates a New token object version, update metadata. That is, from object0 to object0*.

Because each wallet is also an object, transactions actually modify multiple objects at the same time, requiring a more complex indexing strategy.

In addition, if there is For part transfer, the token object will update the remaining balance, that is, change from object0 to object0*, and generate a new object (objectA) to reflect the partial balance.

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Understanding this distinction is essential for interpreting on-chain data for stablecoins in the Sui ecosystem. At Artemis, we believe that in this increasingly fundamental principle-driven In the world, we use first-principles methods to reveal real on-chain data to everyone.

Sui Current status of the stablecoin ecosystem

Note: All data were collected from February 18, 2025

Sui The significant growth in the past year underlines its potential as a key player in the blockchain field. The network's stablecoin market value surged from $5.42 million in January 2024 to $555.15 million in February 2025, reflecting the ecosystem Rapid adoption of the system and increasing influence.

Sui has a diverse portfolio of stablecoins, including 5 local and bridged tokens, meeting DeFi applications Widespread on-chain functional requirements. Ecosystem appeal is further through Local stablecoins like USDC have been enhanced, which have gained significant attention due to their huge popularity as stablecoins. Next, let's take a lookThe composition of Sui stablecoin supply:

According to the decomposition of Sui stablecoin supply, local stability Coins account for 80.1% of the total stablecoin supply on the Internet. In this research article, we will focus on native stablecoins.

1. Sui Stablecoin Market Chart

Sui's stablecoin ecosystem has quickly gained momentum and has become an important part of its booming decentralized finance (DeFi) field part. To better understand its growth and composition, we have compiled the market chart of the Sui stablecoin ecosystem:

Sui's stablecoin market chart reveals a booming DeFi ecosystem that integrates in-depth into decentralized exchanges (DEXs), lending platforms and liquidity protocols. Key players like Cetus, Bluefin and Suilend drive transactions, borrowing and earnings generation of stablecoins, becoming an important part of on-chain liquidity. Emerging protocols, such as Metastable, offer stablecoin exchanges with 0 slippage fees, may push the ecosystem to new heights.

2. Native Sui Stablecoin

*Note: We are currently not tracking FDUSD and BUCK, their market capitalization is approximately US$120 million and US$39 million in the SUI stablecoin ecosystem, respectively.

Looking at the growth of native stablecoin supply on Sui, it can be seen that it is growing exponentially, indicating that its DeFi ecosystem is expanding and adopting rapidly . Over the past year, the supply of native stablecoins has surged, reflecting strong demand for on-chain liquidity, lending and trading. This growth is consistent with Sui's rising TVL, increasing user activity, and deeper integration across DeFi protocols. As more stablecoin issuers recognize Sui’s scalability, low fees and fast transactions, the ecosystem continues to attract capital inflows and new financial applications, solidifying its thriving DeFi innovation as a stablecoin-driven central position.

3. TVL in the protocol

The bar graph shows the distribution of AUSD, USDC, and USDY in different DeFi protocols. A significant observation is that 75.80% of AUSD deposited SUILEND, which is significantly higher than USDC's 40.32% in SUILEND. It was also found that 86.55% of USDY is stored in CETUS, which is the highest between the two protocols.

This raises two problems: >

Why is AUSD assigned to SUILEND higher than USDC?

A careful look at SUILEND's annualized rate of return (APR) provides a compelling explanation. lending rates show that AUSD offers an annualized rate of return of 11.19%, making it one of the most attractive earnings-generated stablecoins on the platform. By comparison, USDC’s annualized rate of return is only 6.06%, making it for the Relatively less attractive to depositors seeking profits.

Why is CETUS the highest TVL protocol for USDY?

A key reason for CETUS dominance is its annualized rate of return of up to 46.92%, which is far beyond Navi's 5% annualized rate of return. As can be seen from the above data, this huge difference in returns may attract more liquidity providers to deposit USDY into CETUS, explaining that it is higher than other protocols in TVL.

4. The distribution of stablecoins on the largest shareholders (EOAs) shows that a few wallets occupy most of the liquidity, indicating a few key players Dominates the liquidity in the ecosystem.

Stablecoin distribution: large holders and income-driven liquidity distribution

From the pie chart above, large holders strategically allocate funds to high-yield DeFi protocols. AUSD'sThe largest holder, WalletA (47.4%), interacts primarily with SUILEND, leveraging its high annualized yield on lending. Similarly, USDY is highly concentrated, with WalletB and WalletC controlling all USDY shares 94%, and WalletB actively carries out liquidity tillage on CETUS. Meanwhile, USDC distribution is more diverse, although its largest holder, WalletD (16.6%), frequently interacts with CETUS to increase and remove liquidity to optimize profit farming. These patterns highlight the role of earnings incentives in shaping stablecoin distributions, with liquidity tending to flow to protocols that provide the most attractive returns.

What is the future prospect of Sui stablecoin?

In addition to DeFi, Sui's application areas are also expanding, especially in the fields of gaming and payments. One notable project is SuiPlay0x1, designed to attract traditional console and PC gamers by providing game rewards that are seamlessly integrated with the Sui network. This approach is similar to platforms such as Steam, which reports about 132 million monthly active users — a huge market that has not yet interacted with blockchain services. The PC gaming market is expected to reach $60.84 billion in 2024, far exceeding the $31.8 billion crypto-only gaming segment. By closing this gap, Sui is expected to attract a large number of potential users who have not yet been exposed to blockchain services, introducing Web3 through an interesting and familiar gaming experience.

For stablecoin issuers, enter such a large and diverse user base It's a rare opportunity. After players earn NFT-based or tokenized rewards, they need an easy way to exchange or “lock” their bonuses – which is where stablecoins can come into play. When stablecoin issuers choose to issue natively on Sui, they will become the default medium of exchange for these in-game assets, ensuring the stable real value of players while stimulating the ongoing demand for issuer tokens. Ultimately, this will form a flywheel effect: bringing a vibrant new user base to stablecoins, while providing fast and convenient ways to cash out rewards for players who are first exposed to blockchain capabilities.

In addition to games, Sui's focus on payments has opened up another important avenue for the use of stablecoins. In January 2025, Sui co-founder Kostas Krypto demonstrated a demonstration of enabling SMS-based transactions on the Sui network. This progress has great potential for areas with limited network connections, in theseIn regions, cell phone signals are more common than broadband connections. By combining SMS transactions with native stablecoins, groups without access to banks can safely transfer value, further promoting the adoption of digital assets. By issuing natively on Sui, stablecoin issuers can lead in these emerging markets, unlock new revenue streams and significantly expand their user base.

The final thought

Sui's rapid rise as a blockchain ecosystem has become stable The evolution of currency and the increasingly dynamic ecological environment have laid the foundation. With a deep pool of liquidity, strong DeFi adoption and practical applications, Sui is proving itself to be a strong contender in the Web3 economy. The data highlights a clear trend - income incentives drive capital flows, liquidity is concentrated in the hands of a few major players, and DeFi remains the main use case for stablecoins on Sui. However, as the Internet continues to expand in the fields of gaming and payments, new opportunities for stablecoin integration continue to emerge, bringing a wider and more diverse user base. Whether through high-yield lending, liquidity farming, or seamless chain transactions, stablecoins will become the core pillar of Sui's financial infrastructure, shaping the future and more applications of decentralized commerce.