Sui Network Suffers Second Major Outage in Five Months as SUI Token Drops 5.4%

TLDR:

• Sui Network experienced a network stall lasting over five hours, with validators receiving a fix by 3:40 p.m. ET Thursday.
• This marks the second major Sui outage in five months, following a six-hour network stall that occurred back in January 2025.
• SUI token dropped 5.4% to $0.92 during the outage, falling harder than Bitcoin, Ethereum, and most major cryptocurrencies.
• Despite the downtime, Sui-based ETFs from Canary and Grayscale remain active, offering traditional investors direct SUI token exposure.

Sui Network is facing another major outage, raising fresh concerns about the blockchain’s reliability. The layer-1 blockchain experienced a prolonged network stall on Thursday, halting transactions for more than five hours.

Engineers identified the issue and began rolling out a fix to validators. This comes only five months after a similar event in January that also caused roughly six hours of downtime for the network.

Sui Mainnet Stall Disrupts Transactions Again

The Sui team confirmed the disruption through an official post on X around 10:30 a.m. ET on Thursday. The network posted, “Sui Mainnet is currently experiencing a network stall. Be aware that transactions may be paused at this time. Updates will be shared as soon as they are available.”

By 3:40 p.m. ET, the status page confirmed that a “fix is rolling out to validators.” However, full resolution had not yet been confirmed at the time of writing.

This is not the first time Sui has dealt with such disruptions. The network also faced a validator issue in 2024 that blocked transactions from processing.

Each of these events draws comparisons to the early reliability struggles Solana once encountered. Built to compete with other fast layer-1 networks, Sui has now faced repeated questions about its uptime consistency.

The outage arrived at an inconvenient time for the network. SUI, the native token, dropped 5.4% in the last 24 hours, falling to trade at $0.92.

That decline outpaced losses seen across Bitcoin, Ethereum, and several other major cryptocurrencies during the same period.

Meanwhile, the broader market context adds pressure to an already testing situation. SUI reached an all-time high of $5.35 in January 2025, but has since dropped more than 82% from that peak. The repeated downtime events could weigh further on investor confidence in the short term.

Sui’s Broader Market Presence and Network Background

Despite the outage, Sui has maintained a growing presence in traditional finance markets. Earlier this year, the first SUI exchange-traded funds (ETFs) launched, with products from Canary and Grayscale both offering exposure to the SUI token. These products also include staking reward access for traditional investors through equity markets.

Sui was developed by Mysten Labs, a company that grew out of Meta’s Diem project. The network launched in 2023 after Mysten Labs raised $300 million in a Series B round. That funding round valued the company at $2 billion back in 2022.

The network was built with speed and scalability as core goals. However, repeated stalls are now testing that reputation among both retail and institutional participants. Validators and developers will likely face growing scrutiny as the team works to prevent future outages.

How Sui addresses these recurring technical challenges will matter greatly to its long-term credibility.