Grayscale Research emphasizes Sui blockchain's architecture, led by former Facebook Diem members, positioning it for mass-market consumer applications due to its high transaction throughput and low fees.

Executive Summary

Grayscale Research has published a report highlighting Sui blockchain's potential for scalability and usability, particularly for mass-market consumer applications. The report emphasizes Sui's unique object-based model and parallel processing capabilities, which contribute to high transaction throughput and low fees. Founded by former Facebook Diem members, Mysten Labs is actively developing across the Sui application stack.

The Event in Detail

The Grayscale Research report, "Built for Scale: Why Sui Stands Out," examines Sui's architecture. Sui aims to deliver a user experience exceeding Web 2.0 companies while enabling on-chain ownership and global value transfer. Launched in 2023, Sui was founded by key members involved in Facebook's Diem blockchain project, with the goal of creating a crypto platform capable of supporting billions of users.

Market Implications

Sui's architecture is designed for global scalability, making it suited for high-frequency, low-latency use cases like payments and gaming. The object-based model allows transactions to be processed in parallel, differentiating it from account-based blockchains like Ethereum and Solana. As of July 2025, Sui trails Solana in actual transactions per second (TPS), but its theoretical capacity at maturity is higher. While Ethereum and Solana are projected to generate over $500 million in annualized network fee revenue in 2025, Sui is on track for $15 million, reflecting its early stage in monetizing its user base. Its low average transaction cost, approximately 3x lower than Solana and 150x lower than Ethereum, necessitates significant scaling of network activity to achieve comparable revenue.

Expert Commentary

The Grayscale Research report positions Sui as a potential leader in the smart contract platform space due to its technological edge and supporting strategy. The report suggests that the next consumer "killer application" in crypto could emerge from the Sui ecosystem, driven by its focus on usability and scalability.

Broader Context

Sui's architecture is designed to address scalability, decentralization, and security challenges that have hindered mainstream blockchain adoption. Unlike networks that rely on Layer 2 rollups with centralized sequencers, Sui distributes transaction processing without bottlenecks. The object-based programming approach allows for massively parallel transactions. Sui also introduces Walrus, a decentralized storage solution, eliminating reliance on third-party cloud providers. However, Sui faces a $4.5 billion token unlock in September 2025, which could lead to price volatility. Maintaining 7% staking yields, expanding DeFi TVL to $2 billion, and leveraging RWA integrations are crucial for sustaining demand amid scheduled liquidity events.

Sui's focus on RWAs and its Native Bridge Mainnet, enabling trustless cross-chain interoperability with Ethereum, are expected to drive sustained demand. The platform achieved a milestone of 130,000 transactions per second (TPS) due to its object model and asynchronous consensus protocol, enhancing its ecosystem growth across DeFi, NFT, and social applications.