Sui Network: A 2025-2026 Investment Case for the Next-Generation Layer 1 Blockchain

In the rapidly evolving blockchain landscape of 2025, Sui Network has emerged as a formidable contender to traditional Layer 1 (L1) blockchains like Ethereum and Solana. With record-breaking Total Value Locked (TVL) growth, explosive institutional adoption, and a developer ecosystem surging ahead of its peers, Sui is positioning itself as a high-conviction investment opportunity for the next 12–18 months. This analysis unpacks the data-driven case for Sui, highlighting why it is outpacing Solana and other L1s in key metrics and why now is the time to act.

1. TVL Growth: Sui's Explosive DeFi Momentum

Sui's DeFi TVL surged 19.9% quarter-over-quarter in Q3 2025, reaching $2.11 billion. While this figure lags behind Solana's $12 billion and Ethereum's $91 billion, Sui's growth rate is significantly higher than Solana's 32.7% QoQ TVL expansion. More notably, Sui's TVL has grown 220% year-over-year since 2024, outpacing even the most aggressive L1s. This trajectory is driven by protocols like Suilend, which has become a cornerstone of Sui's DeFi ecosystem according to recent analysis.

The network's TVL growth is further bolstered by institutional-grade products. Grayscale's Walrus and DeepBook Trusts, launched in 2025, have attracted billions in capital by offering institutional investors exposure to Sui's native token, $SUI according to reports. These products, combined with Sui's sub-second transaction finality and low gas fees, have made it a magnet for both retail and institutional liquidity.

2. Institutional Adoption: A New Era of Legitimacy

Sui's institutional adoption in 2025 has been nothing short of transformative. The inclusion of $SUI in the Bitwise 10 Crypto Index ETF and the launch of a 2x leveraged SUI ETF by Grayscale and 21Shares have cemented its status as a mainstream asset. These products, alongside partnerships with Franklin Templeton and Google Cloud, have expanded Sui's reach into traditional finance and enterprise infrastructure.

This institutional backing contrasts with Solana's reliance on speculative retail-driven growth. While Solana has secured partnerships with Fidelity and Grayscale for a spot ETF, Sui's diversified institutional portfolio-spanning custody, ETFs, and cloud infrastructure-provides a more robust foundation for long-term adoption according to market analysis.

3. DeFi Innovation: DEX Volume and Developer Ecosystem

Sui's decentralized exchange (DEX) volume surged 232% year-over-year in 2025, hitting $409 million in daily trading activity. This growth is underpinned by Sui's technical advantages, including its Move programming language and parallel execution model, which enable high throughput and low latency.

The developer ecosystem has also seen unprecedented growth. Sui's monthly active developers increased 219% year-over-year to 1,300 in 2025, far outpacing Solana's 83% annual growth. Initiatives like the Sui Overflow hackathon-featuring 352 project submissions-and a $1 million innovation fund have incentivized cutting-edge dApp development. By contrast, Solana's developer base, while larger, has seen a 29.1% annual growth rate, reflecting slower onboarding.

4. Infrastructure Upgrades: Mysticeti, Walrus, and Beyond

Sui's technical roadmap has been a key driver of its growth. The launch of Mysticeti V2 in 2025 brought sub-second transaction finality and enhanced scalability, addressing a critical pain point for DeFi and NFT applications. Meanwhile, Walrus, a decentralized storage solution, has positioned Sui as a leader in data sovereignty and long-term value accrual.

Looking ahead, Sui's 2026 roadmap includes a native cross-chain bridge to Ethereum and the introduction of SuiNS, an on-chain name service that will simplify user onboarding and interoperability according to developer insights. These upgrades, coupled with the Move VM 2.0 upgrade-which reduced gas fees by 40%-have made Sui a developer-friendly alternative to Ethereum.

5. Why Sui Outpaces Solana and Other L1s

While Solana's TVL and developer base remain larger, Sui's growth metrics tell a different story. Sui's TVL growth rate (19.9% QoQ) and developer activity (219% YoY) far exceed Solana's 32.7% TVL growth and 83% developer growth according to market data. This disparity is driven by Sui's focus on institutional-grade infrastructure, lower fees, and a more developer-centric ecosystem.

Moreover, Sui's institutional partnerships and product launches-such as the Grayscale Walrus Trust-have created a flywheel effect, attracting both capital and talent. Solana, despite its first-mover advantage, has struggled to replicate this institutional momentum, relying instead on speculative retail demand.

Conclusion: A High-Conviction Investment for 2026

Sui Network's 2025 performance has been defined by explosive TVL growth, institutional adoption, and a developer ecosystem that outpaces even Solana. With infrastructure upgrades like Mysticeti V2 and Walrus, and a 2026 roadmap that includes cross-chain interoperability and Ethereum integration, Sui is uniquely positioned to capture market share in the next phase of blockchain adoption.

For investors, the combination of technical innovation, institutional backing, and DeFi momentum makes Sui a compelling long-term play. As the network continues to scale, now is the time to position for a 2026 that could see Sui's TVL and market cap reach new heights.