Sui surpasses bitcoin and ethereum as Mysten Labs advances privacy technology

SUI Token Surges on Privacy Speculation

The native token of the Sui layer 1 blockchain, SUI, soared by over 14% in the last day, significantly outpacing both bitcoin (BTC) and ether (ETH). This notable jump comes as traders respond to growing rumors that Sui may eventually introduce privacy-focused transaction features.

While the broader crypto market remained relatively quiet, with bitcoin edging up around 1% and ether climbing by about 1.2%, SUI emerged as the top-performing major token. This strong divergence suggests that SUI’s rally is driven by factors unique to the token, rather than a general market upswing.

Academic Research Fuels Sui’s Momentum

The recent surge in SUI appears to be inspired by research developments rather than a new product release. A new academic paper, co-authored by Mysten Labs—the main team behind Sui—explores how contemporary blockchains can integrate privacy mechanisms without fully replicating the architecture of older privacy coins.

This paper, which serves as a comprehensive review of existing privacy solutions, introduces a structured framework for evaluating privacy approaches across different blockchains. It categorizes privacy into several levels, from basic confidentiality (hiding transaction amounts) to more advanced forms like k-anonymity and complete anonymity, which increasingly obscure the identities of those involved in transactions. Rather than proposing a single new protocol, the paper provides a comparative analysis of existing models.

Sui is positioned within the account-based blockchain model, similar to Ethereum and Solana. The research discusses how these systems might adopt features such as confidential balances, limited anonymity groups, or unlinkable sender-receiver relationships, leveraging cryptographic tools like homomorphic encryption and zero-knowledge proofs.

Importantly, the study highlights the inherent trade-offs of implementing strong privacy. Enhanced privacy protections can lead to greater computational demands, complicate support for lightweight clients, and introduce regulatory challenges.

Shift Toward Privacy and Digital Cash

Throughout 2025, investors increasingly sought assets that offer countercyclical value. In the latter half of the year, privacy-centric coins like Zcash and Monero dramatically outperformed the broader cryptocurrency market, even as bitcoin and ether faced headwinds from macroeconomic pressures and a strong dollar.

Market analysts interpret this trend as a pivot toward digital cash—cryptocurrencies designed for practical use rather than yield generation. These assets utilize zero-knowledge proofs to maintain transaction privacy without compromising speed or regulatory flexibility. Rather than being seen as speculative mania, the rally in privacy coins is viewed as evidence that demand for financial privacy is regaining importance in the crypto space.

Although the research paper does not outline a specific timeline for launching privacy features on Sui or introduce new technology, investors are optimistic that it signals future developments in this direction.