Sui’s mainnet ground to a halt on May 28, marking the second network outage the layer 1 blockchain has suffered this year.

“Sui Mainnet is currently experiencing a network stall. The Sui Core team is actively working on a solution. Be aware that transactions may be paused at this time. Updates will be shared as soon as they are available,” the Sui project posted on X.

The stall halted transaction processing across the network developed by Mysten Labs. SUI token fell 8% in the last 24 hours as the outage unfolded.

Sui launched in 2023 and positions itself as a high-speed, low-fee alternative to Ethereum and Solana. The network targets decentralized finance and gaming applications, where uptime is critical for user retention and protocol credibility.

The Sui Core team did not disclose the root cause of the outage at press time. The project also did not specify when the stall began or ended, or how many transactions were affected during the disruption.

Network outages on layer 1 blockchains carry material weight for traders and developers. Any interruption to transaction finality undermines the core value proposition of high-performance infrastructure. For Sui, a network marketing itself on speed and reliability, operational incidents compound competitive pressure from established rivals.

This is not the first time Sui has faced degraded performance in 2026. The blockchain experienced at least one prior outage earlier in the year, signaling a pattern of stability issues that warrant scrutiny from ecosystem participants.

The Sui Core team’s active investigation suggests the issue is being treated as a priority. However, without transparency on cause, duration, or impact scope, confidence in the network’s operational maturity may face headwinds among institutional users and high-frequency traders who depend on uninterrupted access.