The Sui network stopped producing blocks for over two hours, leading to a keen drop in the token’s price. Data from suivision and suiscan indicate that block generation stopped at 09:15 UTC today and the network has not yet resumed normal operations. This marks the first major failure of the project, a blockchain praised as the “Solana killer.”

Price SUI crashes after network failure

Community members have suggested that validator issues may be causing the disruption. Validators, crucial to processing transactions and maintaining the integrity of the blockchain, appear to be experiencing problems.

Status’s official site, status.sui.io, acknowledges the issue, stating that they are “continuing to investigate” and confirming that “validators are down.” Despite these updates, the development team has not issued an official statement with details on the root cause or timeline for resolution.

Blockchain security firm PeckShieldAlert confirmed the disruption, noting that “there appear to be delays on the Sui blockchain network, with reports indicating that the latest block was produced over an hour ago.”

#PeckShieldAlarm #Sui It appears that the blockchain network is experiencing delays, with reports indicating that the latest block was produced over an hour ago pic.twitter.com/KHFpmMqKxB

— PeckShieldAlert (@PeckShieldAlert) November 21, 2024

The incident sparked discussions on social media, with several members of the crypto community noting similarities between Sui’s current situation and Solana’s past network outages.

Crypto analyst Quinten Francois commented“SUI has been down for 55 minutes and no blocks have been generated during this period. SOL 2.0?” Similarly, WantCoinNews expressed interest in how the Sui community and developers would handle the outages, stating that their response could “either destroy or strengthen trust in the network.” They added a personal note saying, “Let me just ignore this Solana FUD and look for the entries. $5 minimum.”

Ben Armstrong, known as BitBoy, weighed on this matter: “With great pause, I officially announce SUI as the next SOL. How many times do I have to repeat this? I look forward to hearing from the team on this matter. Solana taught us that it is much better for a blockchain to be overloaded than to be underutilized.”

After news of the failure, the token price dropped by 7%. In the last 24 hours, SUI’s price has fallen by almost 10%, reflecting investor concerns about network reliability.

Despite this setback, SUI remains one of the few altcoins to reach a modern all-time high in the current market cycle. The price decline brings the token to a critical support level at the 1.618 Fibonacci extension at $3.24. If this support holds, SUI could be poised for another move higher, potentially heading towards the 2.618 Fibonacci extension level at $4.97.

At the time of publication, SUI was trading at $3.39.

Featured image with X, chart from TradingView.com