10% Drop For SUI: Should We Still Believe In It?

An incident tarnishes the meteoric rise of the SUI crypto, often dubbed the “Solana Killer.” The namesake blockchain stopped producing blocks for over two hours, causing a sharp drop in the token price. While the crypto community debates the reasons behind this outage, some voices wonder whether this event will weaken or strengthen Sui’s reputation.

Outage at Sui: the causes still unclear

The Sui blockchain, known for its ambition to surpass Solana and challenger of Litecoin, has experienced its first major technical misstep. This morning, at 9:15 UTC, block production came to an abrupt halt. More than two hours later, no recovery was in sight.

According to data from suivision and suiscan, the validators — the guardians of the network responsible for transactions and security — appear to be at the heart of the problem.

https://twitter.com/SuiNetwork/status/1859557679909204365

The official site status.sui.io confirms: ” The validators are offline, the investigation is ongoing.”

However, no further details on the origin of this outage or a resolution timeline have been shared by the technical team.

On X, reactions are pouring in:

• PeckShieldAlert indicates a delay of more than an hour between two blocks produced;
• WantCoinNews sees this situation as a test: ” This kind of outage can either destroy trust in the chain or reinforce it“;
• Ben Armstrong, aka BitBoy, quips: ” There you go, Sui officially becomes the new Solana!“

This interruption has cost the token dearly, with the price dropping by nearly 10% in 24 hours, reaching a critical support at $3.24 (Fibonacci extension 1.618). A potential recovery could, however, bring the price back to $4.97.

The crypto community divided in the face of this incident

The Sui outage has reignited tensions in the crypto community, already accustomed to the woes of blockchains like Solana. Some mention a structural weakness, while others see it as merely a passing crisis.

For the optimists, Sui remains a promising blockchain, capable of bouncing back. Indeed, before this outage, the token had reached a new all-time high in this market cycle, a rare feat among current altcoins. Others, more critical, wonder: can the decentralization and speed promised by Sui guarantee sufficient reliability?

Some figures show the immediate impact:

• 7% drop in price in the first few hours following the announcement;
• Total loss of 10% for the day;
• A price stabilized at $3.24, awaiting a possible recovery.

Quinten Francois, crypto analyst, summarizes the stakes well:

” The response of the Sui team to this incident will be crucial for the future of this blockchain.“

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. https://t.co/TJh2zwvQcD

— Sui (@SuiNetwork) November 21, 2024

Finally, despite this setback, SUI remains one of the five cryptos recommended by Grayscale for the end of 2024, alongside projects like Helium. Another reason to keep an eye on this ambitious blockchain.