Sui Network’s Walrus Testnet Goes Live, Impact on SUI Price

The Sui Network’s data storage revamping took a new turn with the Mysten Labs deployment of the Walrus Protocol testnet. Deploying the decentralized storage network marks one of the key advances of Mysten Labs. This testnet launch brings many use cases to Sui users, including the capacity to upload and delete stored data.

They could also host the Walrus Explorer, allowing users to search and access stored data. This tool makes data search quick and comprehensive. It is built by Stakestab Inc., maker of the Suiscan & Blockberry API Platform. The Walrus Protocol is expected to launch on the mainnet in 2025.

Walrus Protocol Caters to Layer-1 And Layer-2

According to George Danezis, Mysten Labs’ Chief Scientist, Walrus Protocol is designed to solve the pressing challenge of achieving a decentralized storage network. This challenge came from the demand for blockchain projects to achieve more decentralization and from the need to support end-user applications with rich media and larger storage needs.

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This challenge applies to both Layer-1 and Layer-2. Noteworthy, Walrus also offers Decentralized Applications (dApps) operating on any L1 and L2s the ability to utilize Walrus Sites. This web hosting solution could serve as an alternative to their existing cloud hosting solutions.

Walrus leverages Mysten’s Layer 1 network, Sui, to enable data storage. The data includes, but is limited to, video, images, PDFs, and audio as binary large objects known as blobs. These files are split into tiny fragments and distributed across multiple nodes for context.

The method utilized for this process is known as “Red Stuff.” It is worth noting that the Ethereum Dencun upgrade first implemented Blobs.

Walrus Protocol Compliments Existing Sui Network Upgrades

Sui offers a dedicated management architecture for Walrus to store its global state and metadata. Behind this functionality is speedy consensus, composability, and the opportunity to integrate storage into smart contracts on Sui.

The primary focus hinges on improving the scalability of L2 networks.

The deployment of the Walrus Protocol complements previous updates. This includes the Walrus devnet hackathon, which lasted from August 13 through September 16. More than 40 projects and 288 developers participated, competing for a $50,000 prize pool.

With the new Walrus testnet launch comes the introduction of API endpoints that support deletable blobs. Beyond data deletion capabilities, other updates include the full tokenomics ecosystem for the Walrus token, WAL.

This includes epoch management, staking and unstaking, rewards, and the WAL token faucet for developers.

SUI Price Impact Amidst Walrus Protocol Testnet Launch

Following the news of the Walrus Protocol deployment, the price of SUI has gotten some boosts. According to the latest market data, SUI price traded at $2.04 at the time of writing.

This price action corresponds with a 1.93% surge in the past 24 hours. However, its trading volume suggests that traders may lose interest in the asset, unlike a protocol with new updates.

This metric reached $810.72 million after dropping by 14.56% within 24 hours. SUI may see some of its core performance metrics rebound once the community has priced in the Walrus Protocol update.

Notably, some analysts expect the SUI to reach $2.5 amidst more considerable investor sentiments in the future.