Sui Network, a Layer 1 blockchain developed by Mysten Labs, resolved a two-hour outage caused by a bug in its transaction scheduling logic that led to validator crashes.
The network went offline, halting new block production and leaving decentralized applications (dApps) on the Sui blockchain inaccessible during the downtime.
The outage left the blockchain stalled but was then resolved with the rollout of a patch (v1.37.4) to Mysten Validators. The team confirmed the issue had been fixed and the network was back up, with the status page now indicating that “all systems are operational.”
During the downtime, the SUI token dropped nearly 10% to trade at around $3.42, with its market cap currently sitting at $9.8 billion. The token is ranked 18th by market capitalization.
This is the first major validator-related issue since the Sui mainnet launched in May 2023. However, there was a prior outage in July 2024, when public remote procedure call (RPC) nodes failed to process transactions, and another testnet-related issue earlier this month.
Sui Network’s developers, Mysten Labs, raised over $336 million in funding to date, with major backing from a16z Crypto, Coinbase Ventures, Binance Labs, and Circle Ventures. Despite these disruptions, Sui continues to attract attention and investment, having been valued at over $2 billion following its $300 million Series B round in 2022.
Several exchanges, including Upbit, suspended SUI transactions during the downtime. However, the network has since resolved the issue and operations have resumed.
Blockchain outages can occur for various reasons, including 51% attacks, issues with nodes (entities that process transactions), or software bugs. In this case, the Sui team identified a bug in the scheduling logic that caused the failure, leading to the disruption of normal network operations.
