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Sui Network Faces Major Setback with Network Outage

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Sui blockchain faces major setback with network outage

The Sui blockchain faced a serious setback on Wednesday. The Layer 1 network stopped processing any transactions for over three hours, forcing developers to urgently intervene to try and restore the service. This technical incident raises questions about the operational maturity of so-called high-performance blockchains.

Severe disruption of on-chain activity

According to on-chain data, Sui stopped producing blocks shortly after 3:22 PM CET. For several hours, no transactions were validated, plunging the ecosystem into a near blackout. Development teams quickly confirmed a “network stall“, meaning a network freeze, while actively working on a solution.

In a social media post, developers warned that several decentralized applications and block explorers could be inaccessible or operate in a degraded manner. For users and DeFi protocols built on Sui, the impact is immediate: blocked transactions, frozen liquidity, and inability to interact with smart contracts.

A critical timing for a network in full swing

The incident comes at a sensitive time for Sui. The network had recently seen a marked resurgence of interest, driven by the growth of its DeFi activity and a significant increase in exchange volumes on DEX. Over the last 30 days, volumes had exceeded $10 billion, reinforcing the narrative of a Layer 1 capable of competing with the fastest architectures in the market.

This momentum had also attracted the attention of institutional investors, with the announcement of financial products indexed on the native token. In this context, a prolonged network interruption sends a negative signal, especially to actors evaluating the strength of infrastructure before allocating significant capital.

A history that is starting to weigh on Sui

This is not the first time that Sui has experienced a major outage. In November 2024, developers had already acknowledged a critical bug that caused validators to crash and the network to completely stop. At the time, the incident was presented as an isolated case, linked to a specific software flaw.

However, the recurrence of such events is starting to raise a more structural question. Networks designed to maximize throughput and reduce latency often rely on complex architectures, which can introduce points of fragility. The promise of performance sometimes comes at the cost of imperfect resilience.

The trust of developers and users at stake

For a Layer 1, reliability is a strategic asset. Each hour of downtime weakens the confidence of developers, who hesitate to deploy critical applications on infrastructure prone to interruptions. For users, these outages serve as a reminder that not all blockchains are equal in terms of fault tolerance.

The Sui teams have promised to communicate more once the situation is stabilized. But beyond immediate resolution, it is the network’s ability to demonstrate sustainable improvement in its resilience that will be scrutinized.

As competition between Layer 1 intensifies, the battle is no longer just about the number of transactions per second. It is also, and perhaps more importantly, about the ability to remain operational when pressure rises. For Sui, the episode of this prolonged outage could become a decisive test of credibility.

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