Sui set a new milestone in decentralized exchange (DEX) activity in Q1. According to Messaris report, the networks average daily DEX volume hit an all-time high of $304.3 million, a 14.6% quarter-over-quarter increase. Cetus and Bluefin emerged as the dominant players, which contributed a combined $239.5 million in daily volume, while smaller DEXs like Kriya, DeepBook, and Turbos helped diversify liquidity sources.

The spike in on-chain trading signals a maturing DeFi ecosystem, even as Suis native token, SUI, underperformed the broader market.

SUI Underwhelming Performance in Q1

Messari revealed that SUIs circulating market cap fell 40.3% to $7.2 billion, which is far steeper than the crypto markets overall 18.2% dip during the same period. Despite this, Sui climbed two spots to become the 13th-largest cryptocurrency by market cap.

On the other hand, Suis network fees, which comprise gas fees from transaction execution, including computation and non-refundable storage costs, fell sharply in the first quarter of 2025. Total fees dropped 33.3% quarter-over-quarter to $3.6 million, or 1.0 million SUI.

While the 40.3% decline in SUIs market price contributed to the drop in fee revenue when measured in dollars, the 44.4% decline in fees denominated in SUI suggests that reduced on-chain activity and lower user demand also played a significant role in the overall decrease. Validator payouts were directly impacted by the slowdown.

DeFi and NFT Activity on Sui

Beyond DeFi, NFT activity remained strong on Sui. Total NFT trading volume reached 13.2 million SUI since the mainnet launch. Leading platforms such as Clutchy, TradePort, and BlueMove drove marketplace traction. Additionally, collections such as Fuddies and SuiFrens: Bullsharks and Capys dominated trading. During the same period, Sui also saw institutional engagement ramp up notably.

Grayscales addition of SUI to its Smart Contract Platform Ex-Ethereum Fund in January marked a turning point, which signaled validation from a top digital asset manager. By February, Libre Capital launched its Libre Gateway on Sui, which allowed tokenized access to hedge fund strategies, including offerings from Brevan Howard and BlackRock.

In March, World Liberty Financial announced its decision to partner with Sui. This was followed by yet another notable regulatory development in the same month, when Canary Capital filed for the first US-based SUI ETF.

Meanwhile, Suis strong decentralized exchange momentum has faced significant headwinds in Q2 following a major exploit on Cetus Protocol. On May 22nd, a $223 million attack compromised Cetus Concentrated Liquidity Market Maker (CLMM) pools, significantly disrupting trading activity. While the protocol has pledged full user compensation, supported by its treasury and a strategic loan from the Sui Foundation, the recovery depends on an on-chain community vote to unlock $162 million in frozen assets.