Sui’s DeFi ecosystem is booming in Q4 2024 with record growth

Sui’s decentralized finance (DeFi) landscape saw significant growth in Q4 2024, showcasing impressive metrics and strategic developments, according to the Sui Foundation. The ecosystem’s performance was driven by new stablecoin deployments, increased institutional interest, and infrastructure improvements such as Sui Bridge and DeepBook.

Key metrics and performance

Throughout the quarter, Sui’s total value locked (TVL) reached a peak of $1.8 billion, with an average TVL of $1.4 billion, more than doubling from the previous quarter. Cumulative trading volume reached US$44.3 billion, representing a staggering increase from US$4.5 billion at the end of the third quarter, representing a 444.79% growth in total volume.

High-performance protocols, such as Cetus and Aftermath, have contributed significantly to this growth. Cetus ended the quarter with a TVL of $213 million and volume growth of 522.34%, while Aftermath saw a TVL of $114 million and a 552.71% increase in volume.

Strategic developments

One of the most significant announcements was the collaboration between SatLayer and Babylon Labs, enabling the redemption of Bitcoin (BTC) through Lombard’s LBTC, the largest provider of liquid mortgages on the Babylon platform. This development allowed Bitcoin holders to own their Bitcoin for LBTC, integrating Bitcoin liquidity into Sui’s DeFi ecosystem.

In addition, DeepBook, Sui’s native liquidity layer, launched its own DEEP token to enhance liquidity through mechanisms such as volume-based fees and factory incentives. This initiative aims to maintain a stable liquidity depth, even during periods of low market activity.

Stablecoin developments and protocols

The deployment of stablecoins such as USDC and FDUSD marks a major milestone for Sui, facilitating the process of merging and unbundling between digital assets and fiat currencies. Suilend’s introduction of the SpringSui liquid staking standard and its associated liquid staking token (LST), sSUI, has improved liquidity with features such as zero instant staking.

Furthermore, Bluefin launched the Concentrated Liquidity Market Maker (CLMM), which provides users with various DeFi options, including spot trading for spot settlements. A newcomer to the Sui ecosystem, Shio introduced the Maximum Extractable Value (MEV) protocol, expanding user access to strategies such as arbitrage and liquidation.

NAVI, a long-standing Sui lending protocol, has expanded its offerings by developing an aggregator to help users find efficient swaps for digital assets, and enhance the trading experience with gamification elements.

As Sui’s DeFi ecosystem continues to evolve, developments in Q4 2024 have laid a strong foundation for future growth and innovation, making Sui a prominent player in the DeFi scene.

For more detailed insights, visit Sui Foundation.

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