The native token SUI of layer 1 blockchain Sui surged over 14% in the last 24 hours, significantly outpacing bitcoin and ether , as traders reacted to rumors that the layer 1 blockchain might eventually enable privacy-focused transactions.
This rise was notable in an otherwise stable market. Bitcoin saw a 1% increase during the same timeframe, while ether rose approximately 1.2%, making SUI the day’s top large-cap performer. This difference suggests a token-specific driver rather than a widespread risk-on trend.
Research-driven surge
The rise of Sui appears to stem from research rather than a product debut. A recent study co-authored by Mysten Labs, the core contributor and developer of the Sui blockchain, detailed how contemporary blockchains can integrate privacy elements without entirely adopting the frameworks of traditional privacy coins.
The study, formatted as a knowledge systematization (an academic overview of existing work), presented a formal structure for evaluating privacy models across blockchains, categorizing privacy into different levels ranging from basic confidentiality, where transaction values are concealed, to k-anonymity and total anonymity, which progressively conceal the identities of senders and receivers rather than suggesting a singular new protocol.
It places Sui within the account-based framework, alongside Ethereum and Solana, and investigates how such networks could offer confidential balances, limited anonymity, or unlinkability of sender and receiver using cryptographic methods such as homomorphic encryption and zero-knowledge proofs.
Importantly, the study highlights the associated trade-offs. Robust privacy assurances often elevate computational demands, complicate support for clients designed to operate in resource-limited settings, and provoke regulatory issues.
Shift toward digital cash
Analysts have characterized this trend as a shift toward digital cash, where assets are designed for practical use rather than for yield, with zero-knowledge proofs providing confidentiality without compromising transaction speed or selective compliance. The rise has been viewed less as speculative behavior and more as a signal indicating a resurging demand for financial privacy as a central market theme.
While the study does not offer a timetable for launching a privacy token on the blockchain, nor does it introduce new technology, investors speculate that it hints at future developments.
