On-Chain Finance Hits $120B as Sui's Speed Drives Commercial Adoption

VADODARA, January 28, 2026 — The latest crypto news reveals a structural shift in blockchain adoption as on-chain finance deposits reach $120 billion globally, according to Mysten Labs APAC head Derik Han. Market structure suggests this capital deployment now generates tangible commercial use cases on Layer 1 infrastructure, with Sui emerging as the fastest blockchain after processing 12 billion cumulative transactions.

Investigation: The $120 Billion On-Chain Liquidity Event

Derik Han disclosed the $120 billion figure during the ninth News1 Blockchain Leaders Club event in Seoul. According to the News1 report, Han specifically highlighted Sui-based services holding $2 billion in assets despite the blockchain's 2023 launch. On-chain data indicates Sui has processed 12 billion transactions with consistent speed enhancements, establishing technical dominance in throughput metrics.

Han emphasized Layer 1 blockchains now actively collaborate with traditional companies on finance initiatives. Consequently, the fragmented liquidity problem represents the next technical hurdle. Market analysts interpret this as validation of parallel execution architectures versus Ethereum's sequential processing model.

Market Context & Historical Precedent

Historically, blockchain adoption followed a predictable pattern: speculative trading precedes DeFi experimentation, which then enables real-world applications. The $120 billion milestone breaks from this cycle by demonstrating simultaneous commercial deployment. In contrast, Ethereum's 2021 DeFi summer reached $100 billion in Total Value Locked (TVL) but remained largely speculative.

Underlying this trend is Asia-Pacific's regulatory clarity advantage. South Korea's progressive framework, including mandatory crypto disclosure in real estate transactions, creates fertile ground for on-chain finance experimentation. , institutional accumulation patterns, similar to Bitmine's $340 million ETH stake, now extend to Layer 1 infrastructure investments.

Technical Architecture & Price Action

Sui's transaction speed claims require forensic verification against Ethereum's EIP-4844 blob capacity and Solana's historical downtime issues. The blockchain utilizes a Move programming language and parallel execution, creating distinct order blocks versus Ethereum's gas auction model. This architectural difference explains the consistent throughput enhancements Han referenced.

Price action in native tokens often lags infrastructure adoption by 6-12 months. Consequently, current market fear sentiment at 29/100, as Bitcoin trades range-bound near $89,161 amid US ETF outflow pressures, masks underlying structural growth. Fibonacci retracement levels from 2024 highs suggest critical support at the 0.618 level near $82,000 for broader crypto markets.

By The Numbers

Why It Matters

The $120 billion figure matters because it represents institutional-grade validation. Traditional finance allocates capital based on risk-adjusted returns, not technological novelty. Consequently, this deposit volume signals blockchain infrastructure now meets commercial reliability standards. The Federal Reserve's research on distributed ledger technology, available on FederalReserve.gov, confirms growing institutional interest in settlement efficiency.

Fragmented liquidity remains the critical bottleneck. Han identified this as the next problem Layer 1 collaborations must solve. Market structure suggests cross-chain atomic swaps and liquidity aggregation protocols will experience increased development activity. This mirrors traditional finance's historical consolidation phases.

Expert Commentary

"The $120 billion milestone isn't about DeFi yields anymore. It's about payment rails, supply chain finance, and institutional settlement layers. Sui's transaction throughput demonstrates parallel execution architectures can handle commercial scale, which changes the Layer 1 competitive fundamentally."

Market Outlook & Price Scenarios

Two technical scenarios emerge from current market structure. The bullish case requires sustained transaction growth across Layer 1 networks, particularly in Asia-Pacific jurisdictions with clear regulatory frameworks. The bearish scenario involves liquidity fragmentation worsening, creating isolated pools that undermine network effects.

• Bullish Invalidation Level: Sui maintaining sub-second transaction finality while increasing its $2 billion asset base by 50% within six months would confirm structural adoption acceleration.
• Bearish Invalidation Level: If total on-chain finance deposits fall below $100 billion amid sustained market fear sentiment, the commercialization thesis weakens significantly.

The 12-month institutional outlook focuses on interoperability solutions. As noted in Ethereum's official roadmap documentation, cross-rollup communication protocols will determine whether fragmented liquidity becomes a temporary phase or permanent limitation. The 5-year horizon suggests winner-take-most dynamics in Layer 1 infrastructure, similar to cloud computing's evolution.