As a long-term investor focused on the Sui blockchain, I think it's necessary to discuss the Walrus project. To be honest, the overall potential of the Sui ecosystem has been seriously underestimated by the market.

Last year, Sui's TVL surpassed $1 billion, and projects within the ecosystem began to mature gradually. During this process, I found that Walrus has a very unique positioning—it is not a common DeFi protocol, but rather provides data infrastructure support for the entire ecosystem.

Looking at how DeepBook has grown on Sui makes this clear. Starting from an order book DEX, it gradually evolved into a core application of the ecosystem, with TVL reaching the $500 million level. This case is very inspiring. Will Walrus follow a similar path? My answer is that it’s possible. The reason is simple: it addresses more fundamental and critical issues.

**Pain Point of On-Chain Storage Costs**

Any blockchain application relies on data storage and availability—this is a necessity with no room for negotiation. Although Sui emphasizes high performance and parallel execution, there is an unavoidable issue—storing large files directly on-chain is too costly. Walrus just fills this gap. Developers can store large files, media content, training data, all on Walrus, while only needing to store hashes and proofs on-chain. This layered architecture design is truly the direction for scalability.

**Clear Official Signal**

Recently, the Sui Foundation launched a verifiable AI stack, directly positioning Walrus as the core data layer. This move clearly indicates that the official is focusing on the integration of AI and blockchain, and Walrus is a key part of implementing this strategy. From an investment perspective, following the official strategic layout usually avoids pitfalls.

**Supply Side and Trading Activity**

Currently, the price of WAL is $0.158. Compared to its price at the mainnet launch in March 2024, it has undergone some adjustment. But it’s worth noting that only 31.5% of tokens are in circulation, and investors’ shares have not yet begun unlocking. From the supply side, the pressure is actually manageable. Trading volume on a major exchange remains around $12 million per day, indicating that market interest in this project has been sustained.

**Gradual Launch of Ecosystem Projects**

At the end of last year, a hackathon incubated many projects based on Walrus. This year, these projects will be launched one by one, and the actual usage of the protocol should see a significant increase. Currently, the monthly protocol fee is only over $4,000, indicating that it is still in a very early stage. When the actual demand for data storage truly explodes, there will be considerable room for growth in this number.

**Opportunity Window for Ecosystem Growth**

The Sui ecosystem itself is still in the early stages of development, and many high-quality projects have not yet been fully priced by the market. As a foundational layer, Walrus’s value will continue to grow with the prosperity of the ecosystem—that’s the so-called rising tide lifts all boats. For investors willing to grow alongside the ecosystem, this position is not yet expensive.