Sui network outage triggers 7% price drop despite broader bull market

Replace: Sui mentioned the blockchain community is “backed up and processing transactions once more.” The workforce attributed the outage to “a bug within the transaction scheduling logic that triggered validators to crash.”

Layer-1 blockchain, Sui, has confirmed that its community is presently down and can’t course of transactions.

In a press release on November 21, the workforce behind Sui recognized the issue and introduced {that a} repair can be applied quickly. The venture said:

“The Sui community is presently experiencing an outage and isn’t processing transactions. We have now recognized the problem and a repair will likely be applied shortly.”

In the meantime, Sui’s standing page reveals that block manufacturing stopped over an hour in the past on account of a “main outage” that disrupted the validators.

In accordance with Crypto Slates knowledge, this outage has triggered SUI’s value to drop about 7% to $3.42 on the time of writing. The downturn contrasts with the broader crypto market’s bullish development, with Bitcoin hitting a brand new all-time excessive.

A setback for Sui’s promising trajectory

This marks the primary important downtime for the community since its launch in Might 2023. Sometimes called a ‘Solana Killer’, Sui is now dealing with comparisons to Solana’s historical past of community disruptions.

The outage comes at a vital time for Sui, which has acquired quite a lot of consideration from personal and institutional traders. Grayscale just lately launched a Sui-focused funding belief, and asset administration large VanEck launched a SUI-linked exchange-traded be aware (ETN) for European traders. These developments underline the rising confidence in Sui’s long-term potential.

In the meantime, Sui’s DeFi ecosystem has skilled fast progress. Buying and selling exercise on Sui-based decentralized exchanges (DEX) has reached a report excessive of virtually $6 billion this month, whereas the entire worth of the community (TVL) can also be at a report excessive of round $2 billion.

These numbers are pushed by elevated memecoin buying and selling and the introduction of native stablecoins akin to FDUSD and USDC to the blockchain.

Regardless of this setback, market analysts stay optimistic about Sui’s future. They argue that if progress continues at this tempo, the blockchain may pose a critical problem to established gamers like Solana and Ethereum within the quick time period.

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