In today’s newsletter, Josh Olszewicz from Canary Capital introduces the Sui blockchain and discusses its potential impact on Web3 adoption and optimization for consumer applications.
Special reminder: Are you going to Miami Consensus? Don’t miss the Closed Wealth Management Day on May 6th. There was a special side event just for consultants. Attendance is free for qualified advisors. A CRD number is required when applying.
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The Sui (pronounced like “swee”) network is becoming one of the more differentiated layer 1 blockchains in the current market cycle, combining a novel architecture with design concepts aimed directly at consumer-scale applications. Layer 1 blockchain is the base layer of the network where transactions are recorded, verified and finalized. While often grouped with other high-throughput chains, Sui takes a unique approach to execution, data ownership, and token economics, differences that could be meaningful for long-term adoption and investor positioning.
Launched in 2023 by Mysten Labs, Sui is a Delegated Proof of Stake (DPoS) layer 1 blockchain built using the Move programming language. Its core innovation is an object-based data model that supports parallel transaction execution, allowing the network to process transactions simultaneously rather than sequentially. The architecture is designed to provide high throughput and low latency, improved scalability without reliance on aggregation (transaction batching), and native support for complex, asset-centric applications.
Unlike traditional blockchains where every transaction competes for global consensus, Sui distinguishes between owned objects that can be processed independently and shared objects that require consensus. This selective execution model reduces bottlenecks and improves efficiency at scale.
Sui’s design is optimized for consumer-facing Web3 use cases, including gaming, digital identity, and social applications. The network aims to bridge the gap between Web2 availability and Web3 ownership by minimizing execution friction and improving user experience through features such as zero-knowledge (zk)-based logins and keys. The broader implications are simple: if Web3 adoption is ultimately driven by applications rather than guesswork, then architectures like Sui may have structural advantages.
In addition to the base layer, Sui extends to a broader infrastructure stack. It includes an execution layer for smart contracts and asset logic, decentralized storage for verifiable data via Walrus, programmable encryption via Seal for access control, and confidential computation via Nautilus to support hybrid on-chain and off-chain applications. Together, these components form a full-stack Web3 environment within the Sui ecosystem, reducing dependence on centralized infrastructure providers.
In terms of consensus, Sui adopts a two-layer architecture. Narwhal handles data availability, while Bullshark provides transaction ordering and finality. This design enables the network to maintain high throughput without compromising security.
The total supply of SUI tokens has a fixed upper limit of 10 billion tokens, beyond which there will be no sustained inflation. Key features include the gradual release of tokens through a long-term vesting plan, staking rewards allocated from pre-allocated supply rather than new issuance, and intentional limiting of early circulating supply to reduce selling pressure.
Sui is showing solid growth across several key metrics. Trading activity remains consistent, with an increase in active addresses. As decentralized finance (DeFi) protocols and stablecoin integrations grow, total value locked (TVL), or how much nominal value is within the ecosystem, continues to expand. TVL peaked at around $2 billion in October 2025 and has since declined to $600 million, reflecting a broader pullback in assets across the industry.
Ecosystem growth is driven by the expansion of DeFi platforms, the integration of major stablecoins to increase liquidity and usability, and incentive programs combined with emerging consumer applications that increase engagement. Examples include Scallop, a DeFi center focused on stablecoin lending and revenue generation; Run Legends by Talofa Games, a fitness role-playing game that makes money through mobile, where users can walk and run in real life, fight and earn rewards; and FanTV, a social media platform similar to TikTok.
One way to value Sui, and the broader crypto network, is through the “network P/S ratio” (market cap divided by fees). This metric reflects investor expectations for future growth and the relationship between current usage and valuation. However, unlike traditional stocks, fees fluctuate widely and only validators and token holders who hold SUI and are highly sensitive to incentives and subsidies will incur fees. Therefore, valuation should be integrated with user adoption, transaction trends, and ecosystem expansion.
Sui is also beginning to intersect with traditional financial infrastructure. The launch of SUI-related investment products, including exchange-traded instruments with collateral risk, signals growing institutional interest. This trend reflects the evolution of the broader cryptocurrency market, where access, yield and regulatory packaging have opened the way for complex institutional access and capital deployment.
Sui represents a unique approach to the Layer-1 space, combining parallel execution and object-based architecture, a non-inflationary, vesting-driven token model, and a growing ecosystem of consumer and DeFi applications.
For investors, the key question is not just whether Sui can compete on throughput, but whether its design can translate into sustained user adoption and economic activity. If it does, the network’s architecture and token structure could position it as a meaningful component in building the next phase of Web3’s growth.
Generations of the Internet
Page 1:Online information |Network 2:Platforms and Social Interactions| Network 3: Ownership, composability, and programmable value
For additional learning and unique networking opportunities, Canary Capital is partnering with 3iQ, Digital Ascension Group and Bitnomial to host an exclusive event in Miami on May 4th. learn more.
– Josh Olszewicz, Portfolio Manager, Canary Capital
