SUI’s capitalization fell more than $900 million due to network problems

The Sui network suffered a major outage today. According to Suivision and Suiscan, the blockchain stopped producing blocks at 12:15 (MSC) and has not yet recovered. This has caused serious concerns among crypto community participants. Quotes of the cryptocurrency SUI meanwhile fell by 9.2% (to $3.42). The capitalization of the project lost about $900 million and fell to $9.76 billion. The Sui team promptly responded to the incident. According to representatives of the community, the problem is due to errors in some validators. Developers are actively studying the situation and trying to restore the stability of the network. However, no specific timeline for a solution has been announced yet. The drop in the value of the native digital asset and the failure of the network are of concern to investors, who fear further problems and a possible decrease in confidence in the project.

It is worth noting that 2 days ago the Sui core network was updated to version 1.37.3, and the protocol – to version 68. The update was supposed to improve the performance and reliability of the network. However, it is possible that the outage could be related specifically to recent changes to the system.

Analysts believe that prolonged blockchain outages could negatively impact Sui’s market position. Competitors, including Ethereum and Solana, continue to develop their ecosystems and attract users. Sui may lose some of its audience if it does not fix the problem promptly. The situation remains tense. Investors are advised to follow updates from the project team. The return of the network to normal operation and a convincing explanation of the failure may mitigate the consequences. However, if the resolution of the problem is delayed, it could lead to a deeper drop in the token price and less interest in the project.