Woofun AI reports that Sui's stablecoin supply has converged near the $500 million mark, a stabilization driven by Mysten Labs' implementation of fee-free transfers that decouple transaction costs from asset holding requirements.

DeFiLlama data places the current supply at approximately $478 million, a figure that remains significantly below the network's historical high of $1.6 billion recorded in May 2025. By the end of the first half of 2026, supply had contracted to around $492 million, marking a decline of roughly 69% from the peak. Rather than rebounding to previous highs, the metric has maintained this relative steadiness, indicating a structural shift in how value is retained on-chain.

The protocol update currently supports seven assets, including USDC, USDsui, SuiUSDe, AUSD, FDUSD, USDB, and USDY. Crucially, the feature eliminates the need for users to hold SUI solely to facilitate the movement of these specific stablecoins across the network. This technical adjustment removes a primary barrier to entry for pure payment flows, allowing assets to move without the overhead of native token liquidity requirements.

Per Woofun AI, CertiK figures show that these fee-free rails have processed more than $65 billion in stablecoin transfers since June 10. This recent surge contributes to a broader cumulative volume of over $2.27 trillion across roughly 16 billion transactions since early 2024.

Additionally, the Hashi bridge testnet, launched on July 22, recorded 1.1 million deposits and 165,000 withdrawals in its first three weeks, further expanding cross-chain liquidity options.

Mysten Labs co-founder Adeniyi Abiodun frames this friction reduction as essential for making blockchain-based settlement competitive in high-frequency transfer applications. The divergence between low resident supply and high throughput suggests users are prioritizing velocity over storage, moving assets quickly between wallets rather than keeping funds idle on the network.