Sui Network recorded strong market cap growth in Q3 2025, even as daily transactions and overall on-chain activity declined. According to new data from Messari, the SUI token’s circulating market value rose 23.3% quarter-over-quarter to $11.63 billion. This growth outpaced the broader crypto market’s 20.7% jump during the same period, reflecting rising investor confidence in the protocol despite activity softening on the network.
Market Cap Growth Outpaces the Wider Crypto Sector
The $11.63 billion market cap increase demonstrates Sui’s ability to maintain strong investor demand. However, despite the rise in value, SUI slipped three positions in the market-cap rankings, becoming the 15th largest cryptocurrency by the end of Q3. This shift indicates that several competing networks posted even stronger performance during the quarter.
While Sui’s value growth was impressive, the network saw a notable reduction in fee activity. Total transaction fees fell 11.1% to $3.8 million, continuing a downward trend in network revenue. When measured in SUI tokens, fees dropped 22.3% to 1.1 million tokens. Analysts attribute these declines to decreasing transaction demand and softer network usage, even as the token price climbed.
Large Token Unlocks Increased SUI’s Circulating Supply
A key development during Q3 was the unlocking of 172.1 million SUI tokens—valued at roughly $561 million. These tokens came from multiple sources including reserves, team allocations, investor distributions, and staking rewards. The unlock represented 1.72% of the total supply, pushing the circulating supply to 35.7% of Sui’s maximum token issuance.
Sui’s staking system plays a major role in distributing rewards over time. The protocol aims to release 1 billion tokens through staking, with its inflation rate set at 0.20% annually at the end of Q3. This rate is programmed to decline by 10% every quarter until the full reward distribution is complete. This gradual reduction helps moderate long-term inflation and maintain supply discipline.
Staking Participation Remains High Despite Slight Decline
Even as transaction activity slowed, Sui continued to maintain one of the highest staking participation rates in the sector. Roughly 75.4% of eligible SUI tokens remained staked during the quarter, a small decrease from Q2 but still representing strong network engagement.
Because SUI’s price increased significantly, the total USD value of staked tokens rose 15.8% to $24.58 billion. However, the network’s real annualized yield—a metric that adjusts for inflation and price changes—came in slightly negative at –0.09%. This suggests that while staking remains popular, returns for participants are being squeezed by slower transactional activity and declining network fees.
Daily Transactions and Active Addresses Fall in Q3
Network usage data showed a clear slowdown in Q3. Average daily transactions dipped 4.7% to 4.7 million, while average daily active addresses fell 9.5% to 895,800. The decrease in both metrics signals reduced demand for on-chain activity, which directly contributed to the drop in transaction fees.
Average transaction fees themselves dropped 17.3% to 0.0025 SUI (approximately $0.0088). Meanwhile, sponsored transactions—where users do not pay gas fees—accounted for 32.1% of all activity, highlighting continued reliance on incentives to drive engagement.
Validator Network Continues to Expand
Despite the slowdown in network activity, Sui’s validator ecosystem continued to grow. The number of active validators expanded from 104 to 122 during the quarter, reflecting strong interest from operators and increased decentralization of the network’s core infrastructure.
The Sui Foundation plays a vital role in distributing stake allocations across validators. With significant token holdings, the Foundation helps ensure balanced staking distribution rather than allowing a small group of validators to dominate. This approach supports long-term security and decentralization, both key components of a resilient blockchain ecosystem.
Foundation Efforts Strengthen Network Stability
The Sui Foundation’s focus on supporting staking, incentivizing validators, and ensuring the network’s decentralization provides an important counterbalance to slowing activity metrics. While usage has dropped, Sui’s underlying infrastructure and validator growth remain strong indicators of the network’s health.
By backing a broad validator set and managing token allocations responsibly, the Foundation continues to build structural stability into the ecosystem. This foundation could prove critical as Sui positions itself for long-term growth.
Outlook: Strong Fundamentals Amid Slower Activity
Sui Network’s Q3 performance paints a mixed but overall encouraging picture. Market cap growth and high staking participation demonstrate confidence from long-term holders and institutional participants. However, declining transactions, lower fee revenue, and reduced activity highlight areas that need improvement for sustained ecosystem expansion.
With a strong validator network and continued Foundation support, Sui has the groundwork for ongoing development. As the broader crypto market evolves, the network’s ability to reignite activity will be crucial in determining its future trajectory.
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