Ethereum

2024

when

SUI had a two-hour network outage, where block production stalled. The chain is back to normal, but raises the issue of its resilience and scalability.&nbsp; 
SUI had a nearly two-hour network outage on November 21, raising questions of its scalability potential. Later, the network once again had a gap where no new block was discovered for over 29 minutes. The outages happened at a time when the SUI network tried to process a record number of transactions per second. 
In both cases, <a href="https://suiscan.xyz/mainnet/txs/tx-blocks" rel="nofollow noopener" target="_blank">block production</a> resumed at its usual high speed with one-second finality. The SUI team stated the reason for the delay was a bug that caused validators to crash. Lack of consensus on SUI can stall block production and propagation.&nbsp; 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 The Sui network is back up and processing transactions again, thanks to swift work from the incredible community of Sui validators. 
 The 2-hour downtime was caused by a bug in transaction scheduling logic that caused validators to crash, which has now been resolved. <a href="https://t.co/TJh2zwvQcD" rel="nofollow" target="_blank">https://t.co/TJh2zwvQcD</a> 
 — Sui (@SuiNetwork) <a href="https://twitter.com/SuiNetwork/status/1859569509687849469?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">November 21, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
The bug on SUI concerned transaction scheduling, which made validators unable to handle the traffic and finality. Delegators are a crucial role on SUI, both for network finality, and for producing passive returns through staking.&nbsp; 
SUI has a total of 108 validators, a fraction of Solana’s over 1,000 special entities. SUI aims for success similar to Solana, but has already faced some of its first stress test. The recent outages had a fast recovery, but invited comparison to previous periods of Solana inactivity due to flawed validator consensus.&nbsp; 
<h3 id="span-style-font-weight-400-sui-reaches-price-record-on-peak-open-interest-span">SUI reaches price record on peak open interest</h3> 
The outage happens at a time when SUI rallied into the top 15 of coins and tokens, trading near its all-time high of $3.70. Later, SUI slid toward $3.50 after the market rally slowed down. SUI trades on a three-year peak of open interest above $655M. The token may face a further correction in case long positions are attacked, or the entire crypto market starts a drawdown.&nbsp; 
SUI tokens may face price pressures in the long run, as only 34.35% of the tokens are unlocked. The token has a slow unlocking schedule, but a significant share allocated to Series A, Series B and Early Contributor backers . 
The SUI L1 network was one of the best-financed chains, raising $385B in a series of VC rounds and token sales. SUI used the market peak in 2022 to raise <a href="https://cryptorank.io/ico/sui" rel="nofollow noopener" target="_blank">$300M</a> in a single series B round, with backers including Binance Labs, Coinbase Ventures, and Andreessen Horowitz.&nbsp; 
Despite the VC backing, SUI had a unique start, launching its trading from the end of May. SUI has not seen the usual drawdowns of VC-backed projects, but managed to enter the market during a bull market with favorable conditions. SUI has a long way to go until all tokens are unlocked, with the horizon stretching into 2030.&nbsp; 
<h3 id="span-style-font-weight-400-record-traffic-preceded-the-sui-network-outage-span">Record traffic preceded the SUI network outage</h3> 
The increased traffic and interest caused a stress test for the project. SUI also reached peak trading volumes on Binance, potentially leading to increased transaction count. SUI also had a recent peak in token turnover as the L1 token reawakened along with other assets.&nbsp; 
SUI total value locked also increased, expanding almost constantly since the August 6 market correction. The chain now carries more than <a href="https://defillama.com/chain/Sui" rel="nofollow noopener" target="_blank">$1.64B</a> in total value locked, with the biggest contributions from Navi protocol and SUI Lend. SUI carries up to 15M daily <a href="https://suivision.xyz/statistics" rel="nofollow noopener" target="_blank">transactions</a>, with 826.24 daily active wallets.&nbsp; 
The chain also carries significant stablecoin liquidity, and is connected to the Ethereum ecosystem. SUI received $864M in stablecoins and a small percentage of ERC-20 bridged tokens. The total inflows from Ethereum are <a href="https://app.artemisanalytics.com/flows?tab=ecosystemFlows&amp;destinationChains=sui" rel="nofollow noopener" target="_blank">$839.21M</a>, among the top L1 chains to receive liquidity. SUI also benefits from its high-profile token with a prominent community. Despite the slowdown in the L1 token narrative, SUI remains an outlier.&nbsp; 
On the day of the outage, the chain also had a vertical increase in the total transactions per second. The count went from under 500 TPS to 9.66K transactions per second, before validators could no longer arrange and coordinate blocks.&nbsp; 
<figure id="attachment_616312" aria-describedby="caption-attachment-616312" style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" class="wp-image-616312 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/11/CPSSuiNov212024.png" alt="SUI reached a record level of transactions per second, but its validators stopped producing blocks due to a bug. " width="626" height="349" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/11/CPSSuiNov212024.png 626w, https://www.cryptopolitan.com/wp-content/uploads/2024/11/CPSSuiNov212024-300x167.png 300w" sizes="(max-width: 626px) 100vw, 626px">
 <figcaption id="caption-attachment-616312" class="wp-caption-text">
 SUI reached a record level of transactions per second, but its validators stopped producing blocks due to a bug. | Source: <a href="https://suivision.xyz/statistics" rel="nofollow noopener" target="_blank">SUI statistics</a>
 </figcaption>
</figure> 
Previously, SUI reached an all-time high of 8.45K TPS on October 14, then falling again to its baseline. The chain has previously performed ‘Break SUI’ events to test the maximum possible transactions per second.&nbsp; 
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SUI network stalled block production for two hours

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