Sui Blockchain Experiences Major Outage: How It Affects TVL
Sui Blockchain– Sui, a layer-1 blockchain developed by Mysten Labs, experienced its first major outage on Thursday, as the network was unable to process transactions for nearly two hours. This downtime marked a rare disruption for the blockchain, which had previously maintained reliable performance since its launch in May 2023. In this article, we’ll break down what caused the outage, the impact on Sui’s price, and what the future holds for this high-speed blockchain network.
The Cause of the Outage: A Critical Bug in Transaction Scheduling
According to Sui’s official Twitter (now X) account, the outage was triggered by a bug in transaction scheduling logic that caused validators to crash. Validators, which are responsible for confirming transactions and maintaining the integrity of the network, were rendered offline as a result. However, the team acted quickly to address the issue, rolling out a patch that was rapidly adopted by the community of Sui validators.
Since its launch, Sui had experienced consistent uptime, with its only notable disruption occurring in June during a testnet outage. This recent downtime, though brief, marked the first significant incident on the mainnet for the blockchain, raising concerns among users and investors about the stability of the network moving forward.
Sui’s Total Value Locked (TVL) and Token Price Impact
At the time of the outage, Sui’s native token, SUI, saw a dip in value, falling as low as $3.36. However, the price has since recovered slightly, climbing back to $3.56. Although the token showed a nearly 5% decrease in price over the past day, it had briefly risen to $3.68 before retreating again. Despite the drop, SUI’s price has shown strong growth overall, with the token surging around 80% following Donald Trump’s recent election victory.
As of now, Sui is ranked eighth in terms of total value locked (TVL) among all blockchains, with $1.6 billion in assets secured on its network. This marks a 55% increase in TVL over the past month, a testament to the network’s growing popularity and potential in the decentralized finance (DeFi) space.
Sui’s Outage Mirrors Challenges Faced by Other High-Speed Blockchains
Sui’s outage was reminiscent of the issues experienced by Solana, a blockchain often touted as a Solana killer due to its similar focus on speed and scalability. In fact, Solana had five major outages in 2022, with the most recent one occurring in February 2023. The parallels between the two blockchains are hard to ignore, as both networks aim to push the boundaries of what’s possible in blockchain technology.
Armani Ferrante, CEO of Backpack, a Solana-based wallet, commented on Sui’s recent outage, noting that projects pushing the limits of on-chain performance often face occasional disruptions. This sentiment reflects a broader reality in the blockchain space: while fast transaction speeds and scalability are essential, they sometimes come at the cost of network stability.
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